VED car tax prices set to rise

Buy a new vehicle, registered and delivered by March 31, and avoid the potential increase.

Real World Examples

The current road-tax system is fairly straightforward, the more carbon dioxide (CO2) your car emits, the more tax you pay each year – and owners whose cars emit under 100 grams per kilometre (g/km) of CO2 are exempt from paying road tax entirely.

This is all set to change as of the 1st of April 2017.

Under the new system, the first year of tax will remain based on CO2 emissions, but after that, all cars (aside from fully electric and hydrogen fuel-cell vehicles) will cost £140 a year to tax.

Furthermore, cars with a list price (after options) of over £40,000 will be subject to an additional £310 levy - although this extra cost is only applicable for the first five years of the car’s life.

Why the change?

The issue with this system is that over time, new car engines have drastically improved, with many cars emitting much lower CO2 levels, falling into brackets that were originally intended for electric, hybrid and niche low-emission cars. This new system is designed to push conventional cars back into their original tax brackets.

How will it affect me?

For most new cars purchased on or after 1 April 2017, the cost of taxing your new car will increase, so if you’re concerned the car you have your eye on might cost more to tax in April, now could be the best time to buy.

What about Zero emission vehicles?

Under the new system zero emission vehicles will have a standard rate of £0, but if the list price is over £40,000 they will pay the additional rate of £310 a year for 5 years.

2017 car tax cost examples

We’ve pulled together some examples to demonstrate how much more you can expect to pay
between the current tax system and the 2017 tax system that comes in play 1st April.

Jaguar F-Type

Jaguar F-Type Coupe, 3.0 Supercharged V6 2-door Auto

Price: £53,010

CO2: 199g/km

Current rate: £1,040 over 3 years

2017 rate: £2,100 over 3 years

That’s a potential saving of £1,060 in Vehicle Excise Duty.

BMW 5-Series

BMW 5 Series Diesel Touring 530d SE 5-door Step Auto

Price: £43,720

CO2: 139g/km

Current rate: £390 over 3 years

2017 rate: £1,100 over 3 years

That’s a potential saving of £710 in Vehicle Excise Duty.

Mercedes A-Class

Mercedes-Benz A-Class Motorsport Edition Premium Auto

Price: £33,870

CO2: 107g/km

Current rate: £40 over 3 years

2017 rate: £420 over 3 years

That’s a potential saving of £380 in Vehicle Excise Duty.

Volkswagen Golf

Volkswagen Golf 1.4 TSI (150 PS) GT Edition 5-door DSG

Price: £26,230

CO2: 113g/km

Current rate: £60 over 3 years

2017 rate: £440 over 3 years

That’s a potential saving of £380 in Vehicle Excise Duty.

Toyota AYGO

Toyota AYGO 1.0 VVT-i x-pression 5-door

Price: £14,525

CO2: 97g/km

Current rate: £0 over 3 years

2017 rate: £400 over 3 years

That’s a potential saving of £400 in Vehicle Excise Duty.

Lexus RX

Lexus RX, 200t 2.0 S 5-door Auto

Price: £43,085

CO2: 181g/km

Current rate: £815 over 3 years

2017 rate: £1,700 over 3 years

That’s a potential saving of £885 in Vehicle Excise Duty.

Compare current and new VED car tax bands

Find your vehicle’s CO2 bracket and compare how much extra you’ll pay when the new VED car tax rates come into play on the 1st April 2017.

CO2
bracket (g/km)
Current band /
First year rate
Current
Standard rate
New
First year rate
New
Standard rate*
VED Difference
Based on 3yrs ownership^
0A £0£0£0£0 / £310£0 / £620
1-50A £0£0£10£140 / £450£290 / £910
51-75A £0£0£25£140 / £450£305 / £925
76-90A £0£0£100£140 / £450£380 / £1,000
91-100A £0£0£120£140 / £450£400 / £1,020
101-110B £0£20£140£140 / £450£380 / £1,000
111-120C £0£30£160£140 / £450£380 / £1,000
121-130D £0£110£160£140 / £450£220 / £840
131-140E £130£130£200£140 / £450£90 / £710
141-150F £145£145£200£140 / £450£45 / £665
151-165G £185£185£500£140 / £450£225 / £845
166-170H £300£210£500£140 / £450£60 / £680
171-175H £300£210£800£140 / £450£360 / £980
176-185I £355£230£800£140 / £450£265 / £885
186-190J £500£270£800£140 / £450£40 / £660
191-200J £500£270£1,200£140 / £450£440 / £1,060
201-225K £650£295£1,200£140 / £450£240 / £860
226-255L £885£500£1,700£140 / £450£95 / £715
More than 255M £1,120£515£2,000£140 / £450£130 / £750

*Cars with a list price of over £40,000 pay an additional rate of £310 per year on top of the standard rate, for five years.^Second saving listed based on new car list price of over £40,000.

Beat the change

Contact your nearest Listers dealer, to find out more and enquire about our range of new cars in stock.

Dealer Listing

  • VED car tax savings detailed based on annual payment of VED and are an approximation. Images shown are for illustration purposes only. Base model vehicles used within car tax cost examples.