From 1st April 2017 the Vehicle Excise Duty (VED) is changing. This VED reform will not apply retrospectively to cars registered prior to that date, nor does it apply to other vehicle types, e.g. Commercial Vehicles.
As a minimum all cars, with the exception of Zero Emission Vehicles, will see an increase of VED due on the 1st April 2017.
VED is based on the CO2 emissions of the vehicle
- The higher the CO2 emissions of the vehicle, the more VED is due.
- There is one rate for the 1st year when the vehicle is registered (First Year Rate) and another for the 2nd and subsequent years (Standard Rate)
- The Standard Rate, like the First Licence Rate, also increases with CO2 emissions.
Applicable to New Vehicles registered from 1st April 2017, the First Year Licence rate of VED will continue to be related to the CO2 emissions of the vehicle, but the bands will change and the rates due will increase.
In the 2nd and subsequent years, the "Standard Rate" of VED will no longer be related to CO2 but will be related to the list price of the vehicle.
- For Vehicles with a "List Price" of £40,000 or less, the VED rate due will be £140
- Fro Vehicles with a "List Price" over £40,000 and "Additional Rate" of £310 (£450 In Total) will be due for 5 years from the end of the First Year Licence
- After the "Additional Rate" expires, the £450 will revert to £140, or whatever the prevailing rate is at that time.
Since this announcement our showroom has seen a dramatic increase in orders from customers looking to secure their new car on the current, more favourable, rates. So don't delay, contact our Sales Team today on 01525 713223 to find out more.
See below for a full breakdown of the new VED system:
|Emissions (g/CO2/km)||First Year Rate||Standard Rate**|
|1 - 50||£10||£140|
|51 - 75||£25||£140|
|76 - 90||£100||£140|
|91 - 100||£120||£140|
|101 - 110||£140||£140|
|111 - 130||£160||£140|
|131 - 150||£200||£140|
|151 - 170||£500||£140|
|171 - 190||£800||£140|
|191 - 225||£1,200||£140|
|226 - 255||£1,700||£140|
**Cars with a list price over £40,000 when new, will pay an additional rate of £310 per year on top of the Standard Rate, for five years.
How Will This Affect Me?
As an example of the forthcoming VED changes, a Vauxhall Corsa 1.4i 75PS Limited Edition with a combined CO2 figure of 120g/km, will see the First Year VED increase from £0 to £160, with the subsequent annual Standard Rate increase from £30 to £140.