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New Car Tax Bands and How They’ll Affect You

Announced in this year’s budget, the tax bands have been released. So how will they affect you?

The new scheme will be implemented on the 1st April, 2017 and only affects new cars registered after that date. It is being overhauled because figures show that under the current scheme three quarters of all new cars would be exempt.

Published On 11th November

The new system sees new cars paying based on updated emissions ratings that take into account low-emission technology such as hybrids and pure-electric cars. After the first year, there will be three duty bands – zero emission, standard and premium.

However, those cars sold before April 1st 2017 will not be affected by the newly placed tax band, and will still follow the current tax bands in place.

New Tax Bands: April 2017 Onwards        CURRENT Tax Bands: Registered From 2001

Typical driving instructors’ cars examples:

Bear in mind that this will affect almost everyone with a new car, so it is worth considering the implications on lesson price and budgeting for the coming year.

This could also result in a growth of Hybrid and Pure-Electric vehicles on our roads, due to lower emissions which results in lower tax bands. Zero emission vehicles are exempt from this tax bracket, so the number of these could also increase in the future.

Find out your cars’ Emissions

For information on tax bands, and to find out your vehicles CO2 emissions, please visit the GOV website, or consult your V5C Logbook.

The money raised will be re-invested on the roads

George Osborne has confirmed that 'every single penny’ raised by this vehicle excise duty will go into a new road fund, which will pay exclusively for highway maintenance and repairs by the end of the decade.

Will you be purchasing a new vehicle or changing to a low emission vehicle before the tax band comes into place? Let us know in the comments!

 

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