Feefo Gold Trusted Service

Are you ready for the new car tax system?

The way cars are taxed in the UK will change from April 1st 2017.

Under the new system, all cars registered from 1st April will pay a one off charge for the first year and a standard rate thereafter.

The one off charge is based on a heavily revised version of the current tax band system.

The standard rates are £0 which will only apply to electric and hydrogen powered vehicles & £140 which will apply to all other vehicles.

But wait there's more! If your vehicle costs more than £40,000, you will have to pay an additional supplement of £310 each year for 5 years.

There are also different standard rates for different fuel type such as bi-ethanol and LPG.

So for example let's take a look at the Jaguar F-Type which has an on the road price of £59,050 and emits 234 g/km of C02.

Here is what it will pay under the new system:

Year 1

£2,010

Years 2 - 5

£450 each year

Year 6 onwards

£140

Its first year of tax will be £2,010. This is because the first year of tax is based on C02 emissions and the F-Type falls under the 226-255 band which is £1,700. It also costs more than £40,000 so it has to pay the supplement charge of £310

From the second year the F-Type falls under the standard tax band of £140, but also has to pay the extra £310 for another 4 years.

This new system also means that electric vehicles may also have to pay the supplement charge if they cost over £40,000.

Take a look at the new Tax Band table and the standard charges based on fuel table below.

Emissions (g/km of CO2)

First Year Rate

Standard Rate

0

£0

£0

1-50

£10

£140

51-75

£25

76-90

£100

91-100

£120

101-110

£140

111-130

£160

131-150

£200

151-170

£500

171-190

£800

191-225

£1,200

226-255

£1,700

Over 255

£2,000

Cars above £40,000 pay £310 annual supplement for five years

Standard Rate based on Fuel Type

Electric Vehicle

Alternative Fuel*

Petrol or Diesel

£0

£130

£140


Alternative fuel vehicles include hybrids, bi-ethanol and liquid petroleum gas.