The Road Fund Tax (or Vehicle Excise Duty) is changing from the 1st April 2017.

Beat the Tax Man! You could save £££’s over the ownership of your new car, IF IT’S REGISTERED BEFORE 1st April 2017

Road Fund Tax rates will be changing for all new cars registered on or after 1st April 2017. From that date onwards, the calculations will be based not only on the CO2 emissions but also the vehicle's list price and the type of fuel it uses.

This will affect all cars whether bought via retail, lease, rental, or fleet.

The changes are proving to be quite confusing, so let us help you to understand them a bit better.

  • If you already own a car, this will not apply to you. The legislation only affects new cars registered on or after 1st April 2017.
  • From 1st April 2017 the rate of Vehicle Excise Duty will be split into 13 bands and calculated on a vehicle's CO2 emissions and its list price. You will not be able to make a 6-month payment in the first year, it must cover 12 months. The amount you pay each year after this depends on the type of fuel the vehicle uses.
  • First Year of registration - the vehicle duty is on a sliding scale, dependent on CO2 emissions, and ranges from £0 - £2,000 (see table below)
CO2 emissions (g/km)Petrol and Diesel Cars 1st Year of Registration Alternative Fuel Cars 1st Year of Registration
0 £0 £0
1-50 £10 £0
51-75 £25 £15
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
Over 255
£2,000 £1,990
  • Second year and each subsequent year thereafter - the duty is dependent on the type of fuel the vehicle uses. (see table below)

Electric Vehicle
Alternative Fuel Vehicle (hybrids, bi-ethanol & LPG) per year
Petrol or Diesel Vehicles per year
£0 £130 £140
  • Dependent on the list price of your vehicle - if your vehicle costs more than £40,000 at the date of registration (that is, the published price before any discounts), after the first 12 months you'll pay a rate based on the fuel the vehicle uses (as above) PLUS an additional rate of £310 per year for the next 5 years. (see table below)

Standard Annual RateAdditional RateTotal Annual Rate
Electric£0 £310 £310
Alternative Fuel
£130 £310 £440
Petrol or Diesel
£140 £310 £450

After 5 years, you'll pay the standard annual rate depending on what fuel your vehicle uses.

(At the moment this legislation applies only to cars, however some vehicles considered commercial vehicles, such as shuttles, may be affected.)

If you're in the market for a new vehicle, it is worth buying and registering before the end of March 2017.
To be sure of securing the old rate tax, take a look at our pre-registered vehicles in stock at our dealerships. These have already been registered by us, but have not left the forecourt - so you stand to grab an excellent deal! We can talk you through the vehicles we already have in stock for a speedier delivery. Ask us about factory fitted accessories too as this will impact on the duty. We can help you make the right choice at the best value!

Confused? If you are unsure about how this new legislation affects you, please get in touch with us and we will help you.

Information based on advice. For more details go to:

Vehicles registered from April 1st are subject to Vehicle Excise Duty (VED) changes which may affect the 'on the road' prices quoted on our website. Please check with our Sales Teams for more details.

Accurate at time of publication 26/01/17. E&OE.