CAR TAX RATES ARE CHANGING!
Everything you need to know about the April 2017 road tax changes:
From April 2017, new road tax tax rates will apply to all new cars. As that date draws ever closer, many motorists may be concerned about the incoming changes to road tax bands and how it will affect their pockets and their choice of car.
The Band A threshold of 100 gCO2/km below which cars pay no Vehicle Excise Duty (VED) was first introduced in 2003.Back then, average new car emissions were 173 gCO2/km. However, average new care missions have fallen to 125 gCO2/km, which means that an increasingly large number of ordinary cars now fall into the zero- or lower-rated VED bands.
This also means that the government receives less tax.
Under the new system, first-year payments will be introduced across all bands except for zero emission cars, which will pay £0. Those emitting more CO2 will pay more tax in the first year, but after that there will be a flat rate of £140 a year. There will also be a new supplement of £310 per year on cars costing more than £40,000.
Five things to know about the new VED bands:
- They only apply to cars registered after April 2017;
- Cars bought before April 2017 will continue to be taxed under the current system so if you're thinking about buying a new car, do it before April!
- CO2 output is irrelevant from the second-year onward, with two new flat rates - a £0 VED rate for zero-emissions vehicles and a flat annual rate of £140 for all other cars;
- Cars over £40,000 are liable for the £140 year two rate as well as an additional annual supplement of £310 for the first five years;
- Zero emission cars that cost over £40k must pay the £310 supplement. Everything else in the £40k bracket will pay £450 a year(£310 supplement £140 flat rate) until that five-year period is over. From then they revert to the £140 flat rate.
How can you avoid this?
Order your new vehicle before the tax increase in April 1st 2017!
If you were thinking of changing your car then NOW is the best time to do so, you could save yourself a significant amount of money!
Vehicle change of ownership and refunds
The rules on VED refunds remain in line with current practice, ie, if a car changes ownership or is taken off the road, the remaining VED is refunded to the owner who paid it and the new owner takes on the full VED responsibility.
•The “tax” does NOT transfer with the car.
•Only full months are refunded.
You should also note it is not necessarily the anniversary of the date of first registration. If the vehicle changes hands, within the first year of registration the new keeper will incur just the standard rate (£140/£130) and the clock is reset on the five-year duration of the ‘additional rate’.
BEAT THE ROAD TAX RISES BEFORE APRIL 2017!
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