Changes to Car Tax

legal_updates

At present the rate of vehicle tax is based on fuel type and Co2 emissions.

Author: Polly Davies
Published:
Reading time: 1 minute

This article is 5 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Changes to Vehicle Excise Duty, aka Car Tax, announced by George Osborne in the 2015 Budget are coming into force this April and will affect all newly registered cars.

At present the rate of vehicle tax is based on fuel type and Co2 emissions.  Cars are banded A – M according to the Co2 emission g/km.  Band A is currently exempt from VED and bands B -D are exempt until the cars first birthday after which there is a scale of charges. 

After April 2017 under the new regulations all new cars will be eligible for car tax and in the car’s first year rates will be based on the carbon dioxide emissions.  Following this it will depend on the type of fuel used; £0 for electric vehicles, £130 for alternative fuel and £140 for petrol or diesel.  All vehicles including electric cars will be liable for the additional rate of £310 after the first year and the rates for the emissions will be added to this.  
There will be more to pay if your new car has a list price above £40,000, so check this out before you buy.

Polly Davies

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.