The way Vehicle Tax (VED) is calculated is changing for vehicles registered from 1 April 2017.
The announced changes means that the first years vehicle tax will be calculated on the vehicle’s CO2 emissions. The majority of vehicles will then move to a standard annual rate from the second year onwards.
If the vehicles list price is over £40,000 at first registration, you will pay an additional premium for five years after the end of the first years tax. After the five year period, only the standard rate will apply.
Vehicle types included in the new scheme:
|Category M||Motor vehicles with at least four wheels designed and constructed for the carriage of passengers.|
|Category M1||Vehicles designed and constructed for the carriage of passengers and comprising of no more than eight seats in addition to the drivers seat.|
|Category M1 Special Purpose (M1SP)||Passengers carrying vehicles which are designed and constructed for special purposes.|
|Category M1 (M1G)||Designed for off road use and meeting designed criteria.|
What will this mean for you?
VED bands and rates for cars first registered on or after 1 April 2017
|CO2 emissions (g/km)||First year rate||Standard rate*|
*Cars with a list price of over £40,000 when new pay an additional rate of £310 per year on top of the standard rate for five years.
We hope that you find this information helpful and understand how these changes could affect you.
Should you have any further questions about the new scheme, please do not hesitate to contact your local Vindis dealership and we will do our best to help.