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Changes to Vehicle Excise Duty from 1st April 2017

Leaasepoint news

 

From 1st April 2017, the way Vehicle Excise Duty or road tax is calculated on new vehicles is changing.

Any vehicle registered from 1st April will be subject to the change which sees a fixed amount for ‘Standard Rate’ from year 2 on all vehicles that have a value of less than £40,000. If a vehicle is over £40,000 a supplement of £310 per year is payable for the first 5 years.

All vehicles registered before 1st April 2017 will remain on the current system.

Below is the new Vehicle Excise Duty/ road tax table

New VED system – for cars registered from 2017
Emissions (g/CO2/km) First year rate Standard rate*
Zero £0 £0
Zero-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
over 255 £2,000 £140
*cars over £40,000 pay £310 supplement for 5 years
 

Be aware that the registration date does depend on the dealership supplying the vehicle and normally a vehicle will be registered on the day of delivery by the dealer. If a vehicle is estimated for delivery prior to the 1st April 2017 but is delayed, any agreed lease costs could increase due the changes detailed.

Examples:

A Zero emissions vehicle with a list price under £40,000 when first registered would have a Vehicle Excise Duty of £0.00

A Zero emissions vehicle with a list price over £40,000 when first registered would have a Vehicle Excise Duty of £310.00

A 145g/CO2/km emissions vehicle with a list price under £40,000 when first registered would have a Vehicle Excise Duty of £200.00 for the first year and the following years would be £140.00

A 145g/CO2/km emissions vehicle with a list price over £40,000 when first registered would have a Vehicle Excise Duty of £200.00 for the first year and the following years would be £450.00

If you have any queries regarding your car or van leasing requirements or concerning this article please contact Leasepoint

For official information please visit: https://www.gov.uk/vehicle-tax-rate-tables/overview

Posted by LPN on February 14th 2017

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