New car tax rules 2017
New car tax rules 2017

New car tax rules 2017

From April 2017 there will be new rules in place regarding car tax, however many people are going to be out of pocket.

Currently, any car that produces less than 100g/km of carbon dioxide (CO2) does not pay vehicle excise duty (VED), better known as car tax, making hybrid and other low-emission cars exempt.

However, from 1st April 2017, buying that same car new will set you back up to £120 in the first year or £680 over five years.

What are the new rules?

The following applies to brand new cars bought from April 2017

Zero-emissions cars will remain exempt from road tax.
All other cars will be charged a varying amount for the first year, based on the amount of CO2 they emit, and then a flat rate of £140 for each subsequent year.

Family-style cars will cost on average between £100-£160 for the first year.

However if you own a car which emits more than 255g/km of CO2 you will have to pay an eye watering £2,000 to tax your car in the first year.

Cars costing more than £40,000 will be required to pay an extra £310 in tax for each of the first five years of ownership.
What can you do?

Going pure electric seems to be the only way forward if you want a new car.

The car you own now will not be affected – these new rules only apply for brand new cars from April 2017.

I have a review of an electric car with the pro’s and con’s here…

Only a few year ago my husband had to take our car off the road because we just couldn’t afford to run it anymore, will there be more people doing this again?

Will this price you out of having a car? What do you think of these new rules?


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