Tax Rates

Published: 2017-02-20

This week we look at vehicle tax rates. From April the prices are rising for vehicles registered after 1 April 2017. The car keepers who own any cars registered prior to April 2017 don’t need to worry. Prices will affect anyone considering buying a new car or any other type of vehicle. We are looking closely what changes are awaiting new vehicle owners. From what we found on (government website) the first year rate is continued to be based on CO2 emission but after this first year the rate will be based on type of the vehicle, the rates are following:

  • £140 a year for petrol or diesel vehicles
  • £130 a year for alternative fuel vehicle (hybrids, bioethanol and LPG)
  • £0 a year for vehicles with zero CO2 emissions (fully electric cars)

Also what we can read on the government website in addition to the prices above any vehicles with price higher than £40,000 will have the rate based as above, however those cars will get additional rate of £310 per year for next 5 years. After 5 years those vehicles will be taxed at one of the standard rate listed above. 

Another thing that draw our attention is that, in the first year the prices are significantly higher than the prices for cars registered on or after 1 March 2001 and before 1 April 2017.

What we can see is that the CO2 emission got more broken down for the new vehicles. In the table for vehicles registered prior to 1 April 2017 we could see that CO2 was weighted up to 100 g/kg. So for any car or vehicle with CO2 emission up to 100g/kg would rate £0.

In the new table the cars registered after 1 April 2017 shows CO2 emission starts for just 1 – 50g/kg  and we will pay £10, and it goes 50-75g/kg 76-90g/kg and 91-100g/kg. What we can see is that the owners of vehicles with CO2 emission up to 100g/kg will pay up to £120 per year.

So let’s have a look at vehicles with the highest CO2 emission how the rate will be affected, so the vehicles with to CO2 emission over 255g/kg will pay a rate of £2,000 for the first year where vehicles registered before 1 April 2017 pay £515 per year. But we need to remember that after that first year the owner of new vehicles will pay set rate depending on type of the vehicle. 

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