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Vehicle Tax on NEW vehicles changed from April 2017 and is now calculated on the vehicles CO2 emissions. The majority of vehicles move to a standard annual rate of £140. Vehicles with zero emissions will be exempt from tax but if the list price is over £40,000 there will be an additional £310 per annum for the first 5 years on top of the standard £140 so £460 per annum.

The first years rate on new cars increases from the standard £140 when emissions exceed 110 grams per kilometre right up to a ceiling of £2,000 per annum on emissions in excess of 255 grams per kilometre! So, purchasing a new vehicle over £40,000 with maximum emission levels will become a very costly business.

Go to the DVLA website for full details.


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