To work out how much vehicle excise duty (commonly referred to as car tax or road tax) you will pay for your car from 1 April 2017, you need to know how much CO2 it emits. You can find this on your vehicle’s V5C registration certificate (log book) or new keeper details section (V5C/2).
VED vehicle duty tax bands 2017 (petrol & diesel cars)
| Band | CO2 (g/km) | One-off annual payment | Total by monthly direct debit | 6 months by one-off payment |
|---|---|---|---|---|
| A | Up to 100 | £0 | n/a | n/a |
| B | 101-110 | £20 | £21 | n/a |
| C | 111-120 | £30 | £31.50 | n/a |
| D | 121-130 | £110 | £115.50 | £60.50 |
| E | 131-140 | £130 | £136.50 | £71.50 |
| F | 141-150 | £145 | £152.25 | £79.75 |
| G | 151-165 | £185 | £194.25 | £101.75 |
| H | 166-175 | £210 | £220.50 | £115.50 |
| I | 176-185 | £230 | £241.50 | £126.50 |
| J | 186-200 | £270 | £283.50 | £148.50 |
| K* | 201-225 | £295 | £309.75 | £162.25 |
| L | 226-255 | £500 | £525.00 | £275.00 |
| M | Over 255 | £515 | £540.75 | £283.25 |
*Includes cars with a CO2 figure over 225g/km but were registered before 23 March 2006
VED rates for new cars 2017 (from 1 April 2017)
From 1 April 2017, a car’s first year of VED will be calculated on its CO2 emissions. The majority of vehicles will then move to a standard rate of £140 annually from the second year. Cars with zero emissions will not pay the standard rate of vehicle tax. However, if a car’s list price is over £40,000 at first registration, the customer will pay the additional rate for five years after the end of the first licence. Tax rates for vehicles registered before 1st April 2017 will not be affected by this change.
An additional rate will be added to the vehicle tax for all new vehicles with a list price of over £40,000. This additional rate of £310 will be payable each year for 5 years from the end of the first vehicle licence. After the 5-year period the standard rate will apply.
Zero emission vehicles will have a standard rate of £0 but if the list price is over £40,000 they will pay the additional rate of £310 a year for 5 years.
What this means for car buyers
If a customer buys a brand new vehicle registered on or after 1st April 2017, after the first licence the majority of vehicles move to the standard rate of vehicle tax which is £140 a year.
If the vehicle list price was over £40,000 at first registration, the customer will pay £450 a year, after the first vehicle licence. For example, the buyer of a Range Rover will pay £2,000 in the first year and £450 each year for the following five years. This is made up of the £140 standard rate and £310 additional rate. After five years the vehicle tax will revert to the standard rate of £140 per year.
Vehicles with a list price exceeding £40,000 with zero emissions, such as a Tesla electric car, will pay the additional rate of £310 a year for a 5-year period, after the first licence. After the 5-year period these vehicles will pay zero vehicle tax.
Alternative fuel vehicles will continue to receive a £10 reduction on vehicle tax rates.
Vehicle duty tax bands 2016
Vehicle Duty Tax Bands 2014 & 2015
Vehicle Duty Tax Bands 2013 & 2014
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Chris Beazer
“it’s CO2 emissions” – please use correct grammar!
George
What a ridiculous system. High time we scrapped this rubbish and just put extra tax on fuel which is a far fairer and simpler system and much more proportional to the damage done to the roads and environment.
Graham Wilkin
Electric cars over £40,000 ZERO emissions paying road tax ridiculous.