New VED Road Tax Changes – What You Need to Know
As we rapidly approach the 1st April, we face one of the most significant changes to the VED road tax in decades. These new measures change the structure entirely, shaking up the rules that we’ve come to know as gospel for vehicle taxing, kicking up many questions and concerns about how best to go about dealing with them. What are these changes? How do they affect you? And can you beat the new prices and save yourself a small fortune? We answer all those questions and more below!
What are the changes?
Predominantly, the structure has been split into a first year rate and a standard rate thereafter. The first year rate is calculated via CO2 emissions, while the second year onwards is a flat rate for most vehicles with only zero emissions cars totally exempt. Lastly, list price cars coming in at more than £40,000 have an extra £310 per year added to the standard rate, and this applicable regardless of CO2 emissions. The table below explains the above information in an easy-to-read format.
Do the car tax changes affect me?
The new tax rules apply only to vehicles registered after 1st April 2017. So if your current vehicle, or any vehicle you purchase was registered before then, you need not worry, as it is not affected.
Can I beat the changes?
There’s no way round it once the new rules are in place of course, however you can secure a new car at its previous tax rate by purchasing prior to 1st April 2017. Nearly New and demonstrator cars will also be an money saving option for tax for a period of time after the 1st April.
Do these changes apply to alternatively fuelled cars?
Yes, however there is a slight difference. If your car is a hybrid, bioethanol or LPG, you’ll be subject to the same structure as above but with a reduction of £10 from each applicable rate.
If you have any further questions about the VED tax changes, do not hesitate to contact the team at Sinclair Skoda today on 01792 621761, or come by and visit us. Our experts will be happy to talk you through the changes and how they affect you and your next car purchase.