Tag: VED

Are you going to buy a car before April to avoid the Road Tax Increases?

The rates explained

Vehicle tax for the first year is based on CO2 emissions.

After the first year, the amount of tax that needs to be paid depends on the type of vehicle. The rates are:

  • £140 a year for petrol or diesel vehicles
  • £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
  • £0 a year for vehicles with zero CO2 emissions

Auto Express have made some useful comparisons

You can read their full article by clicking here http://www.autoexpress.co.uk/car-news/consumer-news/88361/tax-disc-changes-everything-you-need-to-know-about-uk-road-tax

Highest proportionate increase CO2 emissions Current First Year Rate New First Year Rate Three years’ tax current rate Three years’ tax new rates % change three year ownership
Peugeot 208 1.2 PureTech (82) Allure 104g/km £0 £140  £40 £420 950%
Ford C-Max 1.5TDCi (120) Zetec 105g/km £0 £140 £40 £420 950%
VW Passat 1.6 TDI S 105g/km £0 £140 £40 £420 950%
Nissan Qashqai 1.6 dCi  (130) N-Connecta  115g/km £0 £160  £60 £440 633.3%
Lowest proportionate increase
SEAT Alhambra 1.4 TSI (150) 150g/km £145 £200 £435 £480 10.3%
Ford Mondeo 1.5 EcoBoost Titanium  

134g/km

  

£130

  

£200

  

£390

  

£480

  

23.1%
Jaguar XE 2.0i R-Sport (auto)  

179g/km

  

£355

  

£800

  

£815

  

£1,080

  

35.8%
Toyota Verso 1.6 V-Matic Icon 154g/km £185 £500 £555 £780 40.5%
Honda CR-V 2.0 i-VTEC SE 4WD 173g/km £300 £800 £720 £1,080 50%

Why has government changed the rates?

Basically too many cars are now low in CO2 that not enough tax is being collected!

New VED system – for cars registered from April 2017
Emissions (g/CO2/km) First year rate Standard rate*
0 £0 £0
1-50 £10 £140
51-75 £25 £140
76-90 £100 £140
91-100 £120 £140
101-110 £140 £140
111-130 £160 £140
131-150 £200 £140
151-170 £500 £140
171-190 £800 £140
191-225 £1200 £140
226-255 £1700 £140
over 255 £2000 £140
*cars over £40,000 pay £310 supplement for 5 years

steve@bicknells.net