Currently, car tax is determined solely by CO2 emissions, and the car value is not taken into account. So, cars that emit up to 100g/km of CO2 enjoy no tax, and cars that emit between 101-120g/km of CO2 attract only small amounts of tax. Cars that emit 121g/km of CO2 or more pay significant amounts.
New cars will still be divided into 13 different CO2 bands. If you are currently exempt from road tax, or Vehicle Excise Duty (VED) because your car emits less than 100 grams per kilometre (g/km) of carbon dioxide (CO2), this will change come April. The amount of VED you pay will still be based partly on your car's CO2 emissions, however the list price at vehicle registration will affect what you pay after the first year.
TABLE: VED bands and rates for cars first registered on or after 1 April 2017
|CO2 emissions (g/km)||First year rate||Standard rate*|
|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||£1200||£140|
|226 - 255||£1700||£140|
What about cars that are already registered?
If you buy your car before 1 April 2017, you won't be affected by these changes because they only apply to cars registered on or after that date. Your car tax will continue to be calculated using the old system of CO2 emissions.
More information can be found at the GOV.UK website.
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