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​April 2017 changes to Road Tax​

Order and register before 1st April to avoid the new Vehicle Excise Duty

The way we pay VED (annual road tax) in the UK will change to a flat rate system after the first year. These changes will affect new cars registered on or after the 1st April.

What is happening to car tax in 2017?

In 2017, during the first year of driving a car, VED will be calculated based on CO2 emissions. However, the rates are changing. As of the 1st April, rather than paying zero VED on cars that emit less than 100g/km of CO2 emissions, only the cars that have exactly zero g/km figures will be exempt. These cars include electric and hydrogen cars.

After the first year, there will be a flat rate of £140 for all cars. There’s also a tax of £310 to pay annually for five years for cars that cost more than £40,000.

What do I need to know?

All cars will have to be sold with information about how much it will cost to tax. It’s recommended that you check this first to see if you can afford the car that you would like to buy.

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Below examples gives you an idea of how annual road tax will change for some of our popular Ford models:

Fiesta Zetec
Ford Focus Zetec
Ford Edge Sport
Ford Mustang V8

The table below gives you an idea of how annual road tax will change for some of the popular Ford cars


First year

Standard Rate

Tax bill over 3 years

Fiesta Zetec 1.0 100ps




Focus Zetec 1.0 125ps




Edge Sport TDCi 210ps Auto (20" Alloy)




Mustang 5.0 V8 Convertible Auto

£2,000 + £310

£140 + £310


How it is now being calculated?

The calculations are based on your car’s CO2 emissions, starting at £10 for those cars with between 0 – 50g/km figures. After the first year, you will have to pay £140 annually.

VED car tax bands: April 2017 Onwards

Emissions (g/CO2/km) First year rate Standard rate
0 £0 £0
1-50 £10 £140
51-75 £25 £140
76-90 £100 £140
91-100 £120 £140
101-110 £140 £140
111-130 £160 £140
131-150 £200 £140
151-170 £500 £140
171-190 £800 £140
191-225 £1200 £140
226-255 £1700 £140
Over 255 £2000 £140

Cars above £40,000 pay £310 annual supplement for five years

Who will this affect?

These changes will affect most drivers looking to buy a new car after the 1st April 2017. Cars that are registered before that date will not be affected.

What to consider?

It may be advised to buy a new car before the 1st April, if you have the finances in place to do so. Keep your eye out for great offers on cars during the next few weeks and SMC ahead of the changes.