Road tax is a necessary evil and a requirement for every car sold in the UK – although it doesn’t cost anything on some cars. The more expensive or polluting your car, the more money you can expect to pay. However, from 1 April 2017, the system is getting its biggest shake-up for more than 16 years, and this means some cars will cost more to buy after this date. -
If you’re the first registered owner of a new car, you’ll have to pay a different first year tax rate to the regular rate you’ll pay from the second year onwards
What are the 2017 road tax changes?
As before, you’ll have to pay a first year tax rate that’s linked to the car’s CO2 emissions, followed by a standard rate for each year after that. The standard rate for every car is £140 per year but models costing more than £40,000 (after options) will incur an additional £310 cost, meaning most premium models will now cost £450 in total per year to tax.
Any zero-emissions vehicle – i.e. electric cars – won’t incur either the first year or standard rate of tax but, unlike previous years, this no longer applies to plug-in hybrid models that still use a conventional combustion engine. If, however, your zero-emission vehicle costs more than £40,000 – such as a Tesla Model S – you still incur the £310 additional cost for the first five years of ownership before returning to tax-free status.-
As before, tax is no longer transferable between owners.
This means if you sell your car, the new owner will have to tax it themselves – any remaining tax on the vehicle can be claimed back from the government.
Also unchanged is the £10 reduction in tax rates for alternative fuel vehicles such as those converted to run on LPG.Real-world examples -