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Fewer cars to be exempt from VED tax.

Previously, cars that have no CO2 emissions, would have no vehicle tax to pay. While this remains the rule, any car that has a price tag of £40,000 or more will now have to pay a £310.00 surcharge from the 1st April 2017 (for the first five years). But this only applies to vehicles purchased after the 1st of April 2017.


The rolling 40 year VED exemption will remain. Any car manufactured over 40 years ago, will be exempt from any vehicle tax on a rolling basis under the historic vehicle legislation.

Anyone buying a new car on or after the first of April 2017.

The national average in VED is £166.00 annually currently. With the 2017 new rules, after the first year of owning the new car, everyone will be paying a flat rate of £140.00 annually, no matter what the CO2 rating is.

 

Comparison Table Showing VED Rates Before And After 1st April

 

Tax band A 2016 - CO2 up to 100g/km - first year £0 - annual £0.
Tax band A 2017 - CO2 0g/km - first year £0 - annual £0.
Tax band B 2016 - CO2 101-110 g/km - first year £0 - annual £20.
Tax band B 2017 - CO2 1-50 g/km first year - £10 annual - £140.
Tax band C 2016 - CO2 111-120 g/km - first year £0 - annual £30.
Tax band C 2017 - CO2 51-75g/km - first year £25 - annual £140.
Tax band D 2016 - CO2 121-130g/km - first year £0 - annual £110
Tax band D 2017 - CO2 76-90g/km - first year £100 - annual £140.
Tax band E 2016 - CO2 131-140 g/km - first year £130 - annual £130.
Tax band E 2017 - CO2 91-100g/km - first year £120 - annual £140.
Tax band F 2016 - CO2 141-150 g/km first year £140 annual £145.
Tax band F 2017 - CO2 101-110g/km - first year £140 - annual £140.
Tax band G 2016 - CO2 151-165 g/km - first year £185 - annual £185.
Tax band G 2017 - CO2 111-130g/km - first year £160 - annual £140.
Tax band H 2016 - CO2 166-175 g/km - first year £300 - annual £210.
Tax band H 2017 - CO2 131-150g/km - first year £200 - annual £140.
Tax band I 2016 - CO2 176-185 g/km - first year £355 - annual £230.
Tax band I 2017 - CO2 151-170g/km - first year £500 - annual £140.
Tax band J 2016 - CO2 186-200 g/km - first year £500 - annual £270.
Tax band J 2017 - CO2 171-190g/km - first year £800 - annual £140.
Tax band K 2016 - CO2 201-225 g/km - first year £650 - annual £295.
Tax band K 2017 - CO2 191-225g/km - first year £1,200 - annual £140.
Tax band L 2016 - CO2 226-255 g/km - first year £885 - annual £500.
Tax band L 2017 - CO2 226-255g/km - first year £1,700 - annual £140.
Tax band M 2016 - CO2 over 255g/km - first year £1,120 - annual £515.
Tax band M 2017 - CO2 over 255g/km - first year £2,000 - annual £140.