New vehicle tax rates from 1 April 2017Admin
The Government have changed the Tax Rates on new vehicles from 1st April 2017 to reflect their CO2 emissions
The change won’t affect any vehicles registered before April, but drivers can check the vehicle tax rates to make sure they know what they need to pay.
The rates explained
Vehicle tax for the first year is based on CO2 emissions.
After the first year, the amount of tax that needs to be paid depends on the type of vehicle. The rates are:
- £140 a year for petrol or diesel vehicles
- £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
- £0 a year for vehicles with zero CO2 emissions
New vehicles with a list price of more than £40,000
If a vehicle has a list price (the published price before any discounts) of more than £40,000, the rate of tax is based on CO2 for the first year.
After the first year, the rate depends on the type of vehicle (petrol, diesel, alternative fuel or zero emissions) and an additional rate of £310 a year for the next 5 years.
After those 5 years, the vehicle will then be taxed at one of the standard rates (£140, £130, or £0, depending on vehicle type).
Choosing your company vehicle needs careful consideration because of the new Tax Rates and buying second hand may also prove to be more expensive than you think.
For assistance on company expenses contact BM Accounting Solutions