On the 1st April 2017 the way vehicle tax is calculated will change for new cars and some motorhomes - this is a big shake up of the existing system.
George Osborne instigated the changes which will mean that more tax will be collected in the first year of registration where tax will be based on emissions. Prior to this change it is estimated that a quarter of new cars registered didn't pay any road tax at all as they fell into Band A (vehicles with CO2 emissions of less than 100 (g/km)). This will change with petrol and diesel cars with emissions between 1 and 100 (g/km) paying up to £120 in the first year and £140 in subsequent years. For petrol and diesel cars, the first year's car tax was £0 for emissions up to 130 (g/km).
1 April 2017 New Cars First Year Road Tax
|CO2 emissions (g/km)||Petrol (TC48) and diesel cars (TC49)||Alternative fuel cars (TC59)|
|1 - 50||£10||£0|
|76 - 90||£100||£90|
|91 - 100||£120||£110|
|101 - 110||£140||£130|
|111 - 130||£160||£150|
|131 - 150||£200||£190|
|151 - 170||£500||£490|
|171 - 190||£800||£790|
|191 - 225||£1,200||£1,190|
|226 - 255||£1,700||£1,690|
- For subsequent years, there will be a flat rate of £140 (hybrids or cars that run on LPG or bioethanol will pay £130 per year).
- Only electric and hydrogen cars will be exempt from tax.
- For cars with list price of more than £40,000 there will be a 5 year supplement of £310 per year.
For low emission petrol and diesel cars the increases are certainly significant:
A new Nissan Qashqai dCi Visia 5d with CO2 emmisions at 115 (g/km) the first year will go from £0 to £160 and per year from £30 to £140 making a 633.3% increase over 3 years.
At the upper end of the emissions scale, the increases are less dramatic:
So, if you're planning to sell your car and buy a new one before the road tax changes you'll need to tell the DVLA that you no longer own the car and you'll get a refund for any full months of remaining tax. For your new car use reference number from the green ‘new keeper's details' slip (V5C/2) from the log book.