New VED band changes in April 2017

20-Jan-2017

1 April 2017 will see significant changes to the calculation of Vehicle Excise Duty (VED) rates. These changes will only apply to passenger cars registered from 1 April 2017. Vehicles registered before this date will continue to be taxed under the current regime.

 

First year VED will be 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 today. 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) will no longer be based on CO2 emission bands. Instead, a flat rate of £140 per year will apply to all vehicles, the only exception being those with zero CO2 emissions which will continue to benefit from £0 VED. Car Buyer features the Vauxhall Astra, which they state is “the most impressive yet”, as one of the top ten vehicles to order before 1 April 2017 to save money and take advantage of the current system.

 

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



VED Bands prior to 1 April 2017

VED BAND

CO2 emissions

(g/km)

2016/17

First year rate

2016/17

Standard rate

M
Over 255
£1,120
£515
A
Up to 100
£0
£0
B
101-110
£0
£20
C
111-120
£0
£30
D
121-130
£0
£110
E
131-140
£130
£130
F
141-150
£145
£145
G
151-165
£185
£185
H
166-175
£300
£210
I
176-185
£355
£230
J
186-200
£500
£270
K
201-225
£650
£295
L
226-255
£885
£500

 

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 £310 supplement for 5 years