Road Tax Changes 2017

From April 2017 some important changes will be made to road tax for all vehicles registered after April 2017.

For cars first registered on or after 1 April 2017 the first vehicle licence will be calculated on the vehicle's CO2 emissions. The majority of vehicles will then move to a standard rate of £140 annually from the second licence. Cars with zero emissions - no CO2, fully electric and hydrogen cars - will not pay the standard rate of vehicle tax. However, if a car's list price is over £40,000 at first registration, the customer will pay the additional rate for five years after the end of the first licence.

The table below shows the VED bands and rates for cars first registered on or after 1 April 2017.​

VED bands and rates for cars first registered on or after 1 April 2017

CO2 emissions g/kmFirst year rateStandard 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 £1,200 £140
226 - 255 £1,700 £140
Over 255 £2,000 £140

*Cars with a list price of over £40,000 when new will pay an additional rate of £310 per year on top of the standard rate, for five years. After the additional rate expires it will revert back to the standard rate of £140 per year.

If you buy your car before 1st April 2017, you will not be affected by these new rules as they only apply to cars registered on or after that date. Your road tax will continue to be calculated using the current system.

For more information please visit the DVLA website.