Q956: I've heard there are going to be new tax rates for new vehicles in 2017, what are the new requirements?
From 1st April 2017, the way that vehicle tax is calculated and its cost will change for cars and some motor homes.
Vehicles registered before 1st April 2017
If your vehicle was registered before 1st April 2017, you won't be affected by the new rules – you can use the link below to find the amount of vehicle tax you'll pay:
Vehicles registered from 1st April 2017
The first time you tax your vehicle i.e. for the first year, the amount you pay is based on your vehicle's CO2 emissions – you can check how much you'll have to pay by using the link below:
The second and subsequent times i.e. after the first year, you tax your vehicle the amount you pay will depend on the type of vehicle you have. You'll pay:
- £140 a year for normal petrol or diesel vehicles
- £130 a year for alternative fuel vehicles (hybrids, bi -ethanol and LPG )
- £0 a year for vehicles with zero CO2 emissions
This means that for new vehicles, you'll pay more vehicle tax in the first year but a lower annual rate (£140 for most cars) thereafter.
New vehicles costing more than £40 000
If you buy a vehicle that has a list price (the published price before any discounts) of more than £40,000, the amount you pay for your vehicle tax the first time will be based on CO2 emissions – see the link below for the cost:
When you tax your vehicle for a second time i.e. after the first year, you'll pay one of the new rates that depend on the type of vehicle (petrol, diesel, alternative fuel or zero emissions), plus an extra £310 per year for the next 5 years. After this you'll be taxed at one of the new rates i.e. £140, £130 or £0, depending on the type of vehicle.
Discounts on vehicle tax for those claiming benefits
If you claim benefits the link below explains about the discounts you may be entitled to and how to apply for them: