Seven out of 10 new car buyers to pay more road tax after 1 April

Published 18 January 2017

The majority of new car buyers will lose out when new road tax rules come into force on 1 April.

Figures show that new 2017 VED rules - which only affect new cars bought after 1 April - will add more than £500 to the long-term running costs of Britain’s most-popular and eco-friendly vehicles, while providing significant benefits for some of the most-polluting cars.

This means the UK’s best-selling car - the Ford Fiesta 1.0 EcoBoost 100PS - will cost £540 more to tax over four years, while buyers of the V8 Mustang stand to save £245 over the same period of time. This is despite the fact that the American muscle car emits three times more CO2 than the efficient Fiesta.

Until now, the government has offered zero VED to entice car buyers into eco-friendly vehicles; however, with 74 per cent of new cars emitting less than 130g/km of CO2, the government has made a U-turn on its policy and introduced rules to force buyers of new, efficient cars to pay more.

HJ VED Image 2

Under the current tax rules, vehicles that emit sub-99g/km qualify for zero VED for the first year and pay nothing for every year after. However, from 1 April 2017 the government will replace the current 13 band tax system with three new bands - zero, standard, premium – plus a surcharge for electric cars with a list price above £40,000.

This means all new cars bought after 1 April with sub-99g/km CO2 emissions will pay for road tax, a move that will add up to £540 to the long-term running costs of some of Britain’s cleanest and most efficient cars. Even hybrids won’t escape, with buyers of the Toyota Prius paying an extra £405 over four years, while Tesla S buyers will have to pay an additional £930.

However, while buyers of new cars over £40,000 will be forced to pay an extra £310 a year for five years, we have found a gap in the tax law that allows some of the UK’s most-polluting cars under the £40,000 price limit to benefit.

Buyers of the Mitsubishi Shogun 3.2 DI-DC automatic, for example, will save £265 over four years, regardless of the fact that the SUV produces a whopping 245g/km of CO2. It’s a similar story for the Subaru WRX and Nissan 370Z too, with both emitting over 240g/km and saving hundreds under the new system.  


CarlosTheJackal    on 19 January 2017

The headline used in your email bulletin (which is still showing in the URL of this article) is hugely misleading. Seven out of ten drivers won't pay more ... only seven out of ten new car buyers.

By the way, I love that the government's new scheme steals cash from pious buyers of the dullest cars imaginable, yet gives a bonus to buyers of high-performance tools like the 370Z and the Subaru WRX. Hilarious own goal. Expect that loophole to get closed up pretty sharpish, just like what happened with tax-free classic cars about 15 years ago.

RichardWoods    on 21 January 2017

Don't cavil - this is an iniquitous charge on Just About Managing people that simply make it cheaper to run a gas guzzling, carbon spewing, sulphurous monster!

Brian Richards    on 21 January 2017

Its time that the two faced MP's stopped robbing the public and the "Road Tax" is just another way to screw the people of this country of hard earned money so they can continue to squander the billions on junk like HS2 and the new London Airport runway
Plus the fact that we cannot pay enough to world wide charities to squander on fantasy projects like a girl band in Ethiopia or pay the chief executives of these charities salaries of £530,000 per year such as the likes of David Milliband
I wonder how long it will take the other brother (Ed Milliband) to get on the band wagon for a slice of the charities income and giving up politics so he too can line his pockets
"Vehicle Excise License" was renamed from "Road Tax" because the money did not get spent on the roads and I believe that the government was sued because of this which is why it got renamed and from then on it has increased every year for the governments coffers and yet next to NOTHING is spent on the roads except to bodge the surface with patches
Why we British put up with this garbage from the people that are elected to look after us i don't know ........... I think its time that we had a bit of Anarchy in this country to stop these robbers and thieves from screwing the public on a daily basis
Incidentally, there is a think tank in Westminster that meets every month with the sole job of coming up with new ideas for taking more from the wages of the ordinary working class and their motto is "How Much Can We Screw Them Out Of This Month"

anthony whitear    on 22 January 2017

all cars should have to pay the same tax regardless as the big cars already pay more as they use more fuel per mile

lakelander    on 23 January 2017

what will happen to the road tax on a 2013 Defender 2.2?. i currently pay £230 per annum

   on 23 January 2017

So, it wasn't about the environment after all! it's all about the money, money, money!!! Nice to see people being discourage from buying low emission cars, the same week London has been having smog alerts. back to the 50's, madness!!!

Add a comment


Value my car