April 2017+ changes - VED Road Tax Explained

Vehicle Excise Duty changes after April 2017

The way we pay VED (annual road tax) in the UK has changed to a flat rate system after the first year. These changes will affect new cars registered on or after the 1st April 2017.

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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But what about my Euro 5 diesel I'm still holding onto? - Scrappage

Road tax changes from April 2018

In the Autumn Budget, Chancellor Philip Hammond announced that all new diesel cars from 1 April 2018 will face going up a VED band if they fail to meet the latest Euro 6 standards under real-world testing.

New cars will have to meet the real driving emissions (RDE) step 2 test that forms part of the current EU type approval process. This means new cars can pollute up to 1.5 times the current 80mg/km NOx limit under real-world driving if they are to avoid going up a tax band.

The changes only apply to diesel cars, not vans, and do not impact the subsequent £140 yearly fees all cars have to pay after the first year. The table below shows how the new rates will work. Any car failing to meet the Euro 6 standards in real world testing would move up a band, and thus pay anything from £15 to £500 more in first year rates. Not to worry though, you'll find our range of new diesel cars fall well within the Euro 6 standards.

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


fiesta road tax
Ford Focus Zetec road tax 2018
Ford Edge Sport road tax 2018
Ford Mustang V8 road tax 2018
*On a top spec version of £40'000 or more

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

Model

First year

Standard Rate

Tax bill over 3 years

Fiesta Zetec 1.0 100ps

£120

£140

£400

Focus Zetec 1.0 125ps

£140

£140

£420

Edge Sport TDCi 210ps Auto (20" Alloy)

£500

£140

£780

Mustang 5.0 V8 Convertible Auto

£2,000 + £310

£140 + £310

£3,210

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.

Old (pre-April 2017) vehicle VED tax bands: table 

VED BandCO2 EmissionsAnnual rateFirst year rate
AUp to 100 g/km£0£0
B101-110 g/km£20£0
C111-120 g/km£30£0
D121-130 g/km£110£0
E131-140 g/km£130£130
F141-150 g/km£145£145
G151-165 g/km£185£185
H166-175 g/km£210£300
I176-185 g/km£230£355
J186-200 g/km£270£500
K*201-225 g/km£295£650
L226-255 g/km£500£885
MOver 255 g/km£515£1,120

Who will this affect?

The pre-April 2017 registrations from our Used Car selection are subject to the aside table of VED charges. If the car has been registered before this date you can expect to pay a variable scale of annual rates after the first year based on your emissions specifically.