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New nissan note tax band

Here are the new tax rules for all new cars as of April 2017, note the luxury car levy

A shake-up to the way UK road tax rates are calculated is coming into force next April.

Here’s what you need to know about the changes in how road tax – officially known as vehicle excise duty, or VED – is charged.

  • Click here to see a table detailing the new road tax bands from April 2017

How will current road tax bands change in 2017? Will any cars still be exempt?

Cars registered after April 1, 2017, will pay a one-off tax charge for the first year, with rates decided by a significantly revised version of the current CO2-based tax band system.

From the second year onwards, the CO2 scale will no longer apply and a flat annual of £140 will take effect.

Only zero-emissions vehicles will get away with paying nothing at all. Currently, owners of eco-friendly cars with CO2 emissions of 100g/km or lower don’t have to pay any road tax at all. But in 2017, it will cost £400 over three years, £680 over five years and £1,380 over ten years if you buy a car with CO2 emissions of between 91-100g/km.

Cars costing over £40k will also be liable for the £140 VED rate from year two. On top of that, they will need to fork out for an additional annual supplement of £310 for the first five years.

Even zero-emissions cars worth over £40k will have to pay the additional £310.

Once the five years is up, it will revert back to the £140 flat rate.

You’re in luck if you’re buying a car rated at 226g/km of CO2 or above

If, on the other hand, you’re aspiring to get a more reasonably-priced sporty model after the April 1, 2017, deadline, the new tax band system could save you almost £600 over 5 years – or nearly £2,500 if you keep it for 10 years (that’s again due to the £140 flat rate after the first year).

How will the road tax changes affect cars already registered?

Current road tax bands won’t change for cars registered before April 2017