Car Tax Bands

1 April 2017 introduced significant changes to the calculation of Vehicle Excise Duty (Road Fund License or Road Tax) rates. These changes only apply to passenger cars registered from 1 April 2017. Vehicles registered before this date will continue to be taxed under the previous regime.

 

First year VED will continue to be calculated on the vehicles CO2 emissions. However, £0 VED will only apply to vehicles with zero CO2 emissions, rather than to any vehicle with CO2 emissions below 131g/km as before. CO2 emissions will continue to be split into 13 bands, but the breakpoints between bands have been amended – see below.

 

Standard rate VED (payable from year 2 onwards) is no longer based on CO2 emissions bands. Instead, a flat rate of £140 per year applies to all vehicles, the only exception being those with zero CO2 emissions which will continue to benefit from £0 VED.

 

The new rates and bands for the VED system effective 1 April 2017 are set out in the tables below.

VED Bands for cars registered prior to 1 April 2017

VED BAND

CO2 emissions

(g/km)

2016/17

First year rate

2016/17

Standard rate

M
Over 255
N/A
£535
A
Up to 100
N/A
£0
B
101-110
N/A
£20
C
111-120
N/A
£30
D
121-130
N/A
£115
E
131-140
N/A
£135
F
141-150
N/A
£150
G
151-165
N/A
£190
H
166-175
N/A
£220
I
176-185
N/A
£240
J
186-200
N/A
£280
K
201-225
N/A
£305
L
226-255
N/A
£520

 

 

VED Bands from 1 April 2017

VED BAND
CO2 emissions
(g/km)
2017/18
First year rate
2017/18
Standard rate*
M
over 255
£2,000
£140
A
0
£0
£0
B
1-50
£10
£140
C
51-75
£25
£140
D
76-90
£100
£140
E
91-100
£120
£140
F
101-110
£140
£140
G
111-130
£160
£140
H
131-150
£200
£140
I
151-170
£500
£140
J
171-190
£800
£140
K
191-225
£1,200
£140
L
226-255
£1,700
£140

*cars over £40,000 pay supplement of £310 per year for 5 years

 

The What is Whole Life Cost section of our website explains the part Road Tax plays in calculating the total Whole Life Costs for vehicles in your fleet.

 

We have developed a range of highly efficient low CO2 models that will ensure the VED you are liable to pay and therefore your Whole Life Costs are reduced.

 

To calculate the Whole Life Cost of cars on your fleet, use our award winning calculator.

 

What do you want to do now?

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