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Changes to car tax (VED) from April 2017

The way vehicle tax is calculated will change for cars and some motor homes that are first registered with DVLA from 1 April 2017.

Vehicle tax for the first year is based on CO2 emissions.
Vehicle prices shown on are ‘On The Road’ prices which include  the first year vehicle tax.

After the first year, the amount of tax that needs to be paid depends on the type of vehicle. The rates are:

  • £140 a year for petrol or diesel vehicles
  • £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
  • £0 a year for vehicles with zero CO2 emissions

Vehicles with a list price exceeding £40,000 (including factory installed options, delivery charge, number plates and VAT) will pay an additional £310 plus the standard annual rate for a 5 year period. After the 5 year period only the standard rate will apply. You can find more information about Vehicle Excise Duty (VED) here.

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