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Vehicle Excise Duty is Changing

VED is Changing

Road tax is a requirement for every car sold in the UK based upon the level of pollution and cost of the car, soon however Vehicle Excise Duty will be seeing the biggest change to the system in 16 years. The calculation of Vehicle Excise Duty will be changing for cars registered from 1st April 2017, based upon the CO2 emissions, fuel type and list price of the car.

The standard rate of vehicle tax for petrol and diesel cars will become £140 per year after the first year of ownership, with cars over £40,000 paying an additional £310 per year on top of the £140 standard tax. Electric cars will be exempt from paying vehicle tax unless list price exceeds £40,000 - in which case tax will cost £310 for the first five years of ownership before returning to tax free status. 

The government has promised that the increased revenue from VED will spent directly on road improvement. 

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