In 2015, the Government announced that the way in which they charge and calculate road tax would change from 1st April.
Until April 1st 2017, road tax was based on the CO2 emissions of the vehicle, i.e. the higher the CO2 emissions of a vehicle, the more road tax due. There was one rate for the first year (First Licence Rate) and another for the second and subsequent years (Standard Rate). The Standard Rate, like the First Licence Rate also increased with CO2 emissions.
From April 2017, the first year rate continues to be related to the CO2 emissions of the vehicle, however the bands for calculating how much road tax is due have changed.
In the second and subsequent years, the 'Standard' rate of road tax is no longer be related to CO2, but is related to the list price of the vehicle.
For vehicles with a 'List Price' of £40,000.00 or less, the rate will is £140.
For vehicles with a 'List Price' over £40,000.00, an 'additional rate' of £310 (a total of £450) will be due for 5 years from the end of the first year.
After the additional VED rate expires the £450 will revert to £140, or whatever the prevailing rate is at the time.
View the table below to view the new road tax rates in effect from April 1st, for vehicles with a list price of £40,000 or less.
|CO2 emissions (g/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||£1200||£140|
|226 - 255||£1700||£140|