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Under the new system, the first year of tax is 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 in excess of £40,000 will incur a supplement of £310 on their standard rate for the first 5 years in which the standard rate is paid.
2017 New VED car tax bands
Find your vehicle’s CO2 bracket and see how much VED you pay.
*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.
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.
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 incur a supplement of £310 for the first 5 years that the standard rate is paid.
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VED car tax savings detailed based on annual payment of VED.