The New Car Tax Rates

As of 1 April 2017, all newly registered vehicles will be subject to the latest Car Tax Scheme.

New Buyers will now pay a First Year Rate which can be up to an eye watering £2000 for the highest polluting vehicle. This may also be topped up by a further £310 if the vehicle is worth over £40,000.
CO2 Emissions g/km First Year Rate Subsequent Years Standard Rate Total rate if vehicle value £40,000 or more
0  £-  £-  £310
1-50  £10  £140  £450
51-75  £25  £140  £450
76-90  £100  £140  £450
91-100  £120  £140  £450
101-110  £140  £140  £450
111-130  £160  £140  £450
131-150  £200  £140  £450
151-170  £500  £140  £450
171-190  £800  £140  £450
191-225  £1,200  £140  £450
226-255  £1,700  £140  £450
Over 255  £2,000  £140  £450
A £10 Discount is applied to Hybrid vehicles
The following years will be at a flat rate of £140 per year, unless the vehicles value at first registration was over £40,000 in which case the annual rate for the first 5 years will be £450.
If you have a Zero-Emmissions vehicle worth over £40,000 will pay £310 for the first 5 years, after which your rate will drop to £0.
What this means is that if you are considering getting a new car in 2017, you may wish to consider doing so before 1 April as you could save a rather large amount of money in both the short term and long term.
We also anticipate this will have a significant effect on residual values of high value and high polluting vehicles (sports cars, super cars, luxury cars and SUV’s) with prospective buyers possibly looking to get pre 1 April 17 vehicles to save on continued costs.
By way of illustration the new Aston Martin DB11 which would qualify for the highest emissions band of £2000 for year 1 and 450 for years 2-5, totalling £3,800 in car tax at the new tax rates.
However, for a DB 11 under the current scheme (registered before 1 April 2017) would only cost £1,120 for the first year and £505 for subsequent years, therefore after 5 years one would have paid £3,140 in car tax.
Whilst to some this may not seem a significant amount, in light of the fact the example car would have cost its new owner close to £200,000, the extra tax is perhaps far more significant for cars just tipping over the £40,000 threshold regardless of emissions.
With regards to how this will affect our business and personal leasing customers, put simply rates will rise commensurately with the increased taxation costs, so again if you are looking to get a new car in 2017, you should seriously consider doing so before 1 April.
If you have any questions on the new car taxation scheme, or would like to discuss your new vehicle, please contact us on 01223 911 761 or by email at

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