New road tax rules for 2017

Get all the facts about changes to VED road tax coming April 2017.

As of April 1st 2017, the way in which the government taxes vehicles will change. If you’re planning on buying a new vehicle, it’s useful to find out how these changes will impact how much you pay.

For vehicles first registered on or after April 1st 2017, the amount you pay for the first 12 months is based on CO2 emissions.

CO2 emissions (g/km) Petrol or Diesel Alternative fuel
0 £0 £0
1-50 £10 £0
51-75 £25 £15
76-90 £100 £90
91-100 £120 £110
101-110 £140 £130
111-130 £160 £150
131-150 £200 £190
151-170 £500 £490
171-190 £800 £790
191-225 £1200 £1190
226-255 £1700 £1690
over 255 £2000 £1990

The amount you pay each year after that depends on the type of fuel the vehicle uses.

Electric vehicle Petrol or diesel Alternative fuel
£0 £140 £130

Alternative fuel vehicles include hybrids, bi-ethanol and liquid petroleum gas.

New vehicles that cost more than £40,000

After the first 12 months, you’ll pay a rate based on the fuel the vehicle uses and an additional rate of £310 a year for the next 5 years.

Fuel type Standard annual rate Additional rateTotal annual payment
Electric £0 £310 £310
Alternative £130 £310 £440
Petrol or diesel £140 £310 £450

This information is based on the Vehicle tax rates as described by GOV.UK

Source: https://www.gov.uk/vehicle-tax-rate-tables/overview