2017 UK Roadtax Increase

the clock is ticking

The clock is ticking, in little over a months time the governments new Vehicle Excise Duty (VED) will come into force. So what does that actually mean for you?
In short, there will be a flat rate of road tax at £140 per year for any new car registered after 1st April 2017. But many of you will have other questions; Why is the amount of tax changing?, Is the first years payment different? What if i can afford a more prestigious Car? What if i choose to buy a Hybrid or an Electric car? Does that mean now is the best time to buy a new car?

Fear not - All will be answered shortly...

Hyundai Ioniq

Hyundai Ioniq - 1.6 GDi Hybrid SE

No Road Tax

Registered BEFORE 1st April

£140 per year

Registered AFTER 1st April

Why is this happening?

Back in 2001 when the current structure was introduced the average CO2 emissions of a brand new car was 178g/km. In addition to this, in 2003 a new lower band (Band A) allowed people to pay no VED for LIFE. This was if their car produced less than 100g/km. To hit this low target and to meet strict EU emission targets car manufacturers have been striving to make more economical and cleaner engines, Meaning that now, in 2016, the average emissions on a new car is 125g/km and there are an increasingly large amount of cars are paying no or very little road tax.

Seat Alhambra

Seat Alhambra

£130 per year

Registered BEFORE 1st April

£310 per year

Registered AFTER 1st April

Is there a difference in the first year of tax?

Yes - What the new system is actually doing, is splitting new cars into 3 bands.

  • Zero Emission Cars - Which will pay NO tax.
  • Standard Cars - will pay £140 per year
  • £40k + Cars - Regardless of emissions, any car that costs above £40,000 will pay £310 for five years.

Before you get to paying these yearly costs however, all cars will be rated on their emissions and you will have to pay a one-time duty of anything from £0 up to a massive £2,000.

So is this the best time to buy a new car?

Again in short, the answer is YES.

There have been a lot of numbers thrown around on this page, emission ranges, one off payments. But it doesn't feel real until you look at some examples.

Mr Economical

Mr Economical, cares greatly about the environment and has spent a lot of time researching what cars are the best to stop ice caps from melting. He has settled on a Hyundai Ioniq, but, he has spent so much time researching, that he has missed the cut off for the old tax system. So now, instead of paying no tax FOREVER he will have to pay £10 in year one, and then £140 per year there after.

Mr & Mrs Big-Family

Mr & Mrs Big-Family, have been saving up their pennies to buy themselves a brand new SEAT Alhambra 7 seater with all the extras, to fit in all their children and keep them entertained. They have been so distracted by ballet lessons, football practise and karate that they too have seen 1st April fly by. As this car is over £40,000, instead of paying just £130 per year at today's prices, they will now have to shell out £310 a year. Over 5 years that's an EXTRA £900.

Here at Cars2, we want to keep you a step ahead of the Tax man, now is the perfect time to buy a new car and you could save as much as £2,000 on your road fund license. We have a wide range to choose from: Hyundai, Seat and Peugeot. Click below to see our new cars, and find out what you could save.