|Posted by Safe2GO Driving School on 5 February, 2017 at 9:30|
How it will work
• Tax rates for vehicles registered before 1st April
2017 will not be affected by this change.
• Only M1, M1SP and M1G type approved vehicles
are impacted by these changes (for definitions
of vehicles included in these changes see
table 1 below).
• The way in which tax is calculated for all other
vehicle types will not be changing.
• All vehicles (M1, M1SP and M1G) with zero
emissions will be exempt from the standard
rate of vehicle tax. All other vehicles will pay
a standard rate of £140 a year.
• An additional rate will be added to the vehicle
tax for all new vehicles with a list price of over
£40,000. This additional rate of £310 will be
payable each year for 5 years from the end of the
first vehicle licence. After the 5 year period the
standard rate will apply.
• Zero emission vehicles will have a standard rate of
£0 but if the list price is over £40,000 they will pay
the additional rate of £310 a year for 5 years.
• Multi stage build M1SP and M1G vehicles without
a CO2 emissions figure shown as part of the final
type approval will continue to be taxed as PLG.
Where there is a CO2 figure they will be taxed
under the new scheme.
What this will mean for you
• New first licence rates will be introduced from
1 April 2017. (See table 2)
• These rates will be based on the CO2 emissions
of the vehicle.
• The list price of vehicles subject to the scheme
must be provided when the vehicle is first
• This list price will be provided by the manufacturer
or dealer/retailer and reflect the vehicle list price
on the day before it is first registered and taxed.
• For new M1, M1SP and M1G imported/Kit built
vehicles, the list price or notional price is provided
by the person/importer registering the vehicle.
• Notional price will be used where the list is price
is not known.
• A full definition of list price and notional price
will be issued.
What this will mean for the customer
• If a customer buys a brand new vehicle registered
on or after 1st April 2017, after the first licence the
majority of vehicles move to the standard rate of
vehicle tax which is £140 a year.
• If the vehicle list price was over £40,000 at first
registration, the customer will pay £450 a year,
after the first vehicle licence. This is made up of
the £140 standard rate and £310 additional rate.
After five years the vehicle tax will revert to the
standard rate of £140 per year.
• Vehicles with a list price exceeding £40,000 with
zero emissions (including electric) will pay the
additional rate of £310 a year for a 5 year period,
after the first licence. After the 5 year period
these vehicles will pay zero vehicle tax.
• Alternative fuel vehicles will continue to receive
a £10 reduction on vehicle tax rates.