ROAD TAX CHANGES 01/04/201710/03/2017
Vehicle Excise Duty (VED), also known as road tax, is set to alter on 1 April 2017. The changes will mean more expensive cars, both new and used, registered after this date, could incur more tax.
Tax will still be based on the vehicle’s CO2 emissions for the first year, but after that your car will fall into one of three bands: Zero,Standard, Premium.
· Zero – There’ll be no tax to pay for zero-emission vehicles under £40,000
· Standard – Vehicles up to £40,000 list price, with CO2 emissions from 1g/km upwards, will come with tax of £140 from year two.
· Premium – Vehicles with a list price over £40,000, will come with tax of £450 from year two. Zero emission cars with a list price over £40,000 will pay £310 supplement from year two, for the first five years.
There is a £10 reduction for hybrid and range-extender vehicles against the rates above.
What is a list price?
The list price of a vehicle is equal to the Manufacturer’s Recommended Retail Price (MRRP) on the day before the vehicle is registered with the DVLA including standard delivery charges and VAT.
Please note, if your car was first registered before 1 April 2017, there will be no changes to the VED charges it incurs.
For further details about the upcoming changes, including the new rates and bands, click here.
BMW M4 Competition Package
CO2 - 194 g/km Current Band - J Current First Year - £270 Total Cost pre-VED - £1,350 Total Cost post-VED - £3,000 Potential Saving* - £1,650
BMW X5 xDRIVE 40d M SPORT
CO2 - 159 g/km Current Band - G Current First Year - £185 Total Cost pre-VED - £925 Total Cost post-VED - £2,300 Potential Saving* - £1,375