Car Tax, who benefits from the recent changes?

If you’re looking to change your car, you might want to check the new vehicle tax rates before making your choice. On April 1st, 2017, the UK witnessed a huge change to car tax rules. No longer are the diesel devotees, and low emission eco-friendly drivers benefiting from low tax. Recent changes to car tax reflect the modern emissions technology now available in cars. The previous band structure was based on CO2 bands introduced back in 2001, when emissions from new cars were much higher.

New DVLA Tax Rules:
£140 a year for petrol or diesel vehicles
£130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
£0 a year for vehicles with zero CO2 emissions

New Car Tax Rules

The Good…

Current road tax bands won’t change for cars already registered on April 1st, 2017, just those register on or after this date. Under the new rules, electric and hydrogen cars will be exempt. And, cars emitting 99g/km bought before April 1st, will be free of road tax for life. Owners of powerful, fuel guzzling cars will be better off as the new rate of £140 is less than they were paying before.

The Bad…

For those who want to buy a new luxury or low emission cars, things look a little worse. Currently, they’re tax free but the cost will rocket to £310 annually from the second year of operation. Also, new vehicles with a list price of more than £40,0000 will have to pay £450 annually in years 2-6.

The Ugly…

The biggest increase buyers will see is for luxury or low emission cars. Previously tax free, they have since increased to £310 from the second year of operation.
So, Britain’s most-popular and eco-friendly vehicles are set to be hit the hardest, whilst the most polluting cars are seeing significant benefits. The new car tax system is predicted to net an additional £1.4 billion over the next four years. The silver lining (if there is one) is the money raised should eventually be used to improve the UK’s roads.

Check your vehicle tax here:

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