New vehicle tax rates to be introduced in April 2017
New vehicle tax rates are set to be introduced for all cars and some kinds of motor homes that are first registered from 1 April 2017.
Vehicle tax for the first year will continue to be based on CO2 emissions but then it will depend on the type of vehicle from the following year.
The new rates:
- £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.
New vehicles with a list price of more than £40,000
If a vehicle has a list price (the published price before any discounts) of more than £40,000, the rate of tax is based on CO2 for the first year.
After the first year, the rate depends on the type of vehicle (petrol, diesel, alternative fuel or zero emissions) and an additional rate of £310 a year for the next 5 years.
After those 5 years, the vehicle will then be taxed at one of the standard rates (£140, £130, or £0, depending on vehicle type).