Buying A New Car In 2017? Make Sure You Are Aware Of The Increase In Road Tax
This year commences the change of VED tax, otherwise known as road or vehicle tax. Currently car tax is determined by a cars co2 emissions and does not include the cost of the vehicle, however this is set to change from 1st April 2017.
George Osborne implemented the new changes after the UKs failings of co2 emission levels from new cars in the UK. After years of pushing for drivers to purchase electric and hybrid vehicles, the benefit of choosing a hybrid car will be reduced once the changes take place.
|Emission Levels (g/km)||2017 First Year Tax Rate (£)||2016 Tax Year Rate
From 1st April 2017, new cars will be divided into 13 co2 bands; each band will determine how much tax is to be paid during the first year of ownership. The higher the co2 emissions, the higher the tax cost. The only vehicles which qualify for the lowest emission levels and do not have to pay the tax are fully electric cars. The higher tax price will be paid during the first year of owner ship after this time a flat rate of £140 will be in place for hybrid, petrol and diesel cars.
The new changes have also brought into context the cost of the vehicles. Cars which have a list price of more than £40,000 will be hit with an additional £310 ‘premium’ fee for a period of up to 5 years regardless the vehicles emission levels. Currently, electric vehicles which cost £40,000 or more pay no road tax, this new change will result in these owners forking out for the premium fee.
If you purchased your vehicle before April 2017, the current road tax still applies and your tax will not be affected however if you are considering purchasing a new vehicle, now might be the best time to get buying to avoid paying out the increase on VED tax.
If you require motor insurance for your vehicle then give us a call today, whether your vehicle is diesel, petrol, hybrid or electric we can supply you an affordable insurance premium tailored to you. Request a quote now to see how much you can save with Insure 24-7.