Spring 2017 is nearly here and along with it will come a set of new rules around VED (Vehicle Exercise Duty) affecting all new cars registered from 1st April 2017. If you purchase a used vehicle after the 1st April 2017, your car’s VED will remain at the current rate and will not be affected by these changes.
How will you be affected by the changed to VED?
If you are buying a new car registered after 1st April 2017, your first year’s tax will be calculated on Co2 emissions, much as it is today, but at the new rates. These new rates mean that you could pay almost double that of the current rate. The table at the end of this article will show you what you will be paying for first 12 months after 1st April. It is also worth noting that you cannot make a 6-month payment for the first years VED.
The real change comes after the first year where the VED is then set at a flat rate for all vehicles based on fuel type. All petrol and diesel vehicles will pay £140 per year, with ‘alternative fuel’ vehicles (such as Hybrid) paying £130 per year. Vehicles which produce no CO2 emissions will continue to benefit from £0 VED (electric and hydrogen vehicles only).
What’s more, if you purchase a vehicle over £40,000 after the 1st April 2017, you will also be paying an additional £310 supplement on top of the new charges for the first 5 years of ownership. On the 6th year, your vehicle will return to the normal new VED rates.
|Electric vehicle||Alternative fuel||Petrol or diesel|
Should you buy a new vehicle before 1st April?
The saving you will make is very dependent upon the vehicle and engine you purchase. By purchasing a new car before the 1st April 2017, you could save over £500 on some of the vehicles in the Quest Motor Group range – the savings could be even greater if you purchase a vehicle with a list price of greater than £40,000.
If you’re wondering just how much you could be saving by purchasing your new car before 1st April then get in touch with a member of the team who can help you to calculate the exact saving you can make and provide additional advice.
New Vehicle Exercise Duty Rate from 01/04/2017 (First Year):
|CO2 emissions (g/km)||Petrol (TC48) and diesel cars (TC49)||Alternative fuel cars (TC59)|
|1 - 50||£10||£0|
|76 - 90||£100||£90|
|91 - 100||£120||£110|
|101 - 110||£140||£130|
|111 - 130||£160||£150|
|131 - 150||£200||£190|
|151 - 170||£500||£490|
|171 - 190||£800||£790|
|191 - 225||£1,200||£1,190|
|226 - 255||£1,700||£1,690|