How the new car tax ruling will affect you

Tax changes due for 2017

As detailed in Chancellor of the Exchequer George Osborne's budget, Caravan magazine has put together the details of planned changed to new car tax, taking place from 1 April, 2017.

The new tax rate will see a flat rate of £140 annual tax being introduced for all cars giving off emissions. Zero-emissions vehicles will not have to pay any tax.

Don't forget to check your towcar weights against your caravan of choice before you buy with our handy Towmatch tool.

The rate of tax in the first year increases with the higher the level of carbon dioxide (g/km) of the car. See the table below. Also take a look at how three different car models compare before and after the tax change.
 

Vehicle Excise Duty 2017
Emissions (g/CO2/km)First year rateStandard 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 a £310 supplement for five years.
 

-- Read about the most unusual insurance claims. Click here --


At present, car tax is based on emissions, but the higher the vehicle's level of carbon dioxide per kilometre, the high tax you pay per year. Vehicles giving off less than 100g/km pay no tax.

The changes in VED for 2017 only apply to new cars, so the good news is that you won't have to change what you currently pay if you've already bought your car.
 


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