Vehicle tax will be calculated in a new way on cars and some motor homes that are first registered with the Driver & Vehicle Licensing Agency from 1 April 2017 but will remain unchanged for vehicles registered before then.

 

For the first year, tax rates for the affected vehicles will be based on CO2 emissions. In subsequent years, the rates will be

 

  • £140 for petrol or diesel vehicles
  • £130 for alternative fuel vehicles (eg hybrids, bioethanol and LPG)
  • £0 for vehicles with zero CO2 emissions

 

For vehicles with a ‘list price’ (ie a published price before discounts) of more than £40,000, tax rate for the first year is based on CO2 emissions.

 

In the following years, it depends on whether it is a petrol, diesel, alternative fuel or zero emissions vehicle and there will also be an additional rate of £310 pa for the next 5 years. It will then be taxed on one of the standard rates – £140; £130; £0 – depending on vehicle type.

 

‘Vehicle tax rate tables’ enable individual owners to calculate their vehicle’s rate online.

 

‘DVLA webinar for fleet industry: information’ comprises a presentation and Q & A guidance explaining the new system for fleet operators.

 

Please see updated version of this story  new-vehicle-tax-rates-uk  dated 4/4/2017.