Car Tax Changes April Fools we wish

Posted by Safe2GO Driving School on 5 February, 2017 at 9:25

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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.

Categories: Driving School Bishop Auckland, Driving School Darlington, Driving School Newton Aycliffe

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