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How will the new car tax rules impact you?

How will the new car tax rules impact you?

Car tax changes April 2017

 

From 1 April 2017, buyers of new cars registered from this date must immediately pay a new CO2 emissions charge which is based on their new car's efficiency credentials. This means drivers could have to pay as much as £2,000 up-front on the first time they have their new car registered.

From the second time the vehicle is taxed, the cost will depend on your vehicles fuel type:  

Petrol or Diesel = £150 Annually
Alternative Fuel (such as Hybrid) = £140
Electric = £0 Annually

However, if your vehicle's list price (the published price before any discounts) was over £40,000, you will be looking at an additional annual charge of £325 on top of this. This only needs to be paid for the 5 years from the second year the vehicle is taxed.

Breakdown for cars listed over £40,000 from new:

Petrol or Diesel £150 + £325 = £475 Annually
Alternative Fuel (such as Hybrid) £135 + £325 = £460 Annually
Electric = £0 + £325 = £325 Annually

Figures confirmed by GOV.UK

Here's a table of how the charges apply before and after the 1st April 2017.

Registered Pre-April 2017

 Registered Post - 1 April 2017

CO2 emissions

First year rate

Standard rate

CO2 emissions

First year rate (New car when registered)

Standard rate (from 2nd year vehicle taxed) for 5 years.

Up to 100g/km

£0

£0

0g/km

£0

 

101-110g/km

£20

£0

1-50g/km

£10

 

Petrol or Diesel = £150 Annually

 

Alternative Fuel (such as Hybrid) = £140

 

Electric = £0 Annually

111-120g/km 

£30

£0

51-75g/km

£25

121-130g/km 

£110

£0

76-90g/km

£110

131-140g/km 

£130

£130

91-100g/km

£135

141-150g/km 

£145

£145

101-110g/km

£155

151-165g/km 

£185

£185

111-130g/km

£175

166-175g/km 

£210

£300

131-150g/km

£215

176-185g/km 

£230

£355

151-170g/km

£540

186-200g/km 

£270

£500

171-190g/km

£870

201-225g/km 

£295

£650

191-225g/km

£1,305

226-255g/km 

£500

£885

226-255g/km

£1,850

Over 255g/km 

£515

£1120

Over 255g/km

£2,175

*From 1 April 2017, vehicles registered with a list price over £40,000 will also pay an additional £325 annually for five years from the second year of tax.

These charges only apply to new cars registered after 1 April 2017, so if your car has been registered before then don't worry you will not be affected.

If you want to avoid having to pay these additional costs, then now is a good time to consider buying a used car that was registered before the 1st April 2017 or with a new list price that was less than £40,000 if registered after the 1st April 2017. We have a range of vehicles available - some as little as one to two years old with very low mileage - meaning you get all the modern features of a new car without the tax charges.

If you are thinking of upgrading your vehicle, then take a look at our range of low tax used cars available today. 

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