Vechicle Exise Duty

[anthony]

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

[Lockhouse]

Isn't that a cut from the current 500 quid or so? My car tax is higher than my car insurance.

[northernladuk]

Are you exempt if you can't spell it?

[Lockhouse]

Are you exempt if you can't spell it?

Fat fingers, small phone.

[WTFH]

So, buy second hand, or if you want new(ish), get a car maker's ex-fleet at 6 months old.

[AtW]

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.

[AtW]

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...

[WTFH]

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.

[seanraaron]

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.

[Pondlife]

Useful spot by the OP.