The Government is introducing some important changes in Vehicle Excise Duty (VED) starting from 1 April 2017. Vehicle Excise Duty is also known as Road Fund Licence or Road tax.
So what does it all mean?
Vehicles that are registered from 1 April 2017 will be taxed a flat standardised VED of £140 on all vehicles, including cars, armoured cars and motorhomes (except zero emission cars for which the SR will be £0).
Vehicles that are excluded from the new VED are: commercial vehicles (LCVs), motorbikes and heavy goods vehicles.
The first year rates of VED will vary according to the vehicles CO2 emissions level however; a flat SR of £140 tax will apply in all subsequent years unless you drive a zero emission vehicle.
In addition to standardised VED, any cars reaching their second license period – this includes cars with a list price of over £40,000 per year will incur an additional charge of £310 per annum over the next five years.
What happens to cars that are already registered before 1 April 2017?
Current legislation won’t change for cars that are registered before 1 April, so if you are planning to buy or lease a car after this date with a listed price of over £40,000 or more you could save significant money by doing this prior to the date.
Get in touch today if you are looking for a new vehicle!