Car tax changes in 2017 – Beat the tax change | WLMG News
 LIVECHAT
 
  • close

     Telephone

     Email

    First Name
    Last Name
    Email
    Phone
    Dealership
    Your Enquiry
    Random Text Image
    How would you like us to contact you about this enquiry?
    By submitting this enquiry, you are agreeing to us contacting you by your preferred method. We will never share your details with third parties and will only use the data you provide to contact you regarding car sales. To find out more, please view our Privacy policy.
 
  • close

    WLMG Promises

    If you have any feedback on your recent experience we'd love to hear about it, whether it be good, bad or indifferent we always want to know, so if you wish to share your experience with us you can do it in the form.

     Feedback

    Name
    Email Address
    Phone
    Your comment
    Random Text Image
    How would you like us to contact you about this enquiry?

    By submitting this enquiry, you are agreeing to us contacting you by your preferred method. We will never share your details with third parties and will only use the data you provide to contact you regarding car sales. To find out more, please view our Privacy policy.
 
  • close
     Book a Service
    First Name
    Last Name
    Email
    Phone
    Choose Dealership
    Preferred Date
    Preferred Time
     
    Do You Require A Courtesy Car?
    Current Mileage
    Registration No.
    Your Enquiry
    Random Text Image
    How would you like us to contact you about this enquiry?
    By submitting this enquiry, you are agreeing to us contacting you by your preferred method. We will never share your details with third parties and will only use the data you provide to contact you regarding car sales. To find out more, please view our Privacy policy.
image shadow
22/02/2017
Car tax changes in 2017 – Beat the tax change
The current system for taxing a new car in the UK will be replaced in April this year. Here we
reveal everything you need to know, and offer advice on whether you're better off buying a
new car before the new rules come into force.

Last summer, former Chancellor of the Exchequer George Osborne announced a radical
overhaul of the UK's system for taxing cars, known as Vehicle Excise Duty, or VED. The
new regulations come into force on 1 April, and will make some cars much more
expensive to run.

What is happening to car tax in 2017?

The amount of VED you pay will still be based partly on your car's CO2 emissions.
However, while the government has been trying to push people into hybrid vehicles
by making many of them free to tax, the benefit of choosing one will be substantially
reduced after 1 April.

New cars will still be divided into 13 different CO2 bands, which will determine how
much you pay in the first year of ownership, but only zero-emission vehicles, such as
electric cars, will qualify for the lowest band and therefore be tax-free.

From the second year onwards, zero-emission vehicles that cost less than £40,000 new
remain tax-free, while a flat rate of £140 a year will be payable forall petrol, diesel and
hybrid cars that cost less than £40,000. Cars that cost more than £40,000 attract an
additional 'Premium' fee of£310 for years two to five of ownership, regardless of their
emissions.

This means that electric cars which cost more than £40,000 – and currently qualify for
free car tax every year – will no longer be the tax-busting option they are currently
after year one.

Bear in mind, too, that it's the final list price of your car which determines that £40,000
threshold – if you buy a cheaper model, but add options that take the price over that
point, you'll still have to pay the Premium fee. In short, an option costing a few hundred
pounds could end up costing you more than £1500 over five years in extra car tax costs.

Even if you negotiate a discount with the dealer that drops the price of the car back under
£40,000, you'll have to pay the fee, because the listed price will still be more than £40,000.
The list price is the price of the car before the 'on-the-road' charges are added, such as a
delivery charge, new vehicle registration fee, numberplates and fuel.

Below, you'll find a full table detailing how much you'll have to pay in the first year, and in
the years thereafter.

VED car tax rates for cars registered on or after 1 April 2017

What are the current car tax rules?

Currently, car tax is determined solely by CO2 emissions, with the value of the car not
taken into account. Cars that emit up to 100g/km of CO2 attract no tax at all, and cars
that emit between 101-120g/km of CO2 attract only small amounts. It's not until you
get to 121g/km of CO2 that you start to pay significant amounts of car tax.

With this in mind and the tax rules on many cars changing now is the time to visit one
of our dealerships to make sure you are getting the best deal when it comes to Vehicle
Excise Duty. Visit WLMG to beat the Tax man! 



image shadow