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Vechicle Exise Duty

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    Vechicle Exise Duty

    Did anyone else notice this from the summer budget?

    https://www.gov.uk/government/public...le-excise-duty

    Who is likely to be affected

    Purchasers of cars first registered from 1 April 2017 onwards.
    General description of the measure

    This measure reforms Vehicle Excise Duty (VED) for cars first registered from 1 April 2017 onwards. First Year Rates (FYRs) of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle. A flat Standard Rate (SR) of £140 will apply in all subsequent years, except for zero-emission cars for which the SR will be £0. Cars with a list price above £40,000 will attract a supplement of £310 on their SR for the first 5 years in which a SR is paid. All cars first registered before 1 April 2017 will remain in the current VED system, which will not change. The new rates and bands for the post-2017 VED system are set out in the table below:
    New VED system - for cars registered from 2017
    Emissions (g/CO2/km) First year rate Standard rate*
    0 £0 £0
    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
    over 255 £2000 £140
    *cars over £40,000 pay £310 supplement for 5 years

    #2
    Isn't that a cut from the current 500 quid or so? My car tax is higher than my car insurance.
    Last edited by Lockhouse; 25 February 2016, 12:24.
    ...my quagmire of greed....my cesspit of laziness and unfairness....all I am doing is sticking two fingers up at nurses, doctors and other hard working employed professionals...

    Comment


      #3
      Are you exempt if you can't spell it?
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by northernladuk View Post
        Are you exempt if you can't spell it?
        Fat fingers, small phone.
        ...my quagmire of greed....my cesspit of laziness and unfairness....all I am doing is sticking two fingers up at nurses, doctors and other hard working employed professionals...

        Comment


          #5
          So, buy second hand, or if you want new(ish), get a car maker's ex-fleet at 6 months old.
          …Maybe we ain’t that young anymore

          Comment


            #6
            Originally posted by Lockhouse View Post
            Isn't that a cut from the current 500 quid or so? My car tax is higher than my car insurance.
            Not for old cars it ain't... also they charge £310 extra for "expensive" cars (BMW 3 series with options) for 5 years - so that's £140+310=£450 for 5 years collected even from cars that were low on CO2

            Pretty steep first year registration fee also - essentially a few percents of VAT added - would have been more honest and transparent to have higher VAT on cars.

            Comment


              #7
              Originally posted by WTFH View Post
              So, buy second hand, or if you want new(ish), get a car maker's ex-fleet at 6 months old.
              They use list price for VED...

              Comment


                #8
                Originally posted by AtW View Post
                They use list price for VED...


                I'm thinking about the £140 per year, not the £310.


                So, you get a car that pumps out 230g/km, instead of paying £1700 first year VED, you save that money.
                …Maybe we ain’t that young anymore

                Comment


                  #9
                  I knew they wouldn't keep that low-carbon, tax-free thing around for long. Just glad there will be time for me to pay off my diesel and swap it for an electric.

                  Comment


                    #10
                    Useful spot by the OP.

                    Comment

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