New vehicle tax rates are set to be introduced for all cars and some kinds of motor homes that are first registered from 1 April 2017.
Vehicle tax for the first year will continue to be based on CO2 emissions but then it will depend on the type of vehicle from the following year.
The new rates:
- £140 a year for petrol or diesel vehicles
- £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
- £0 a year for vehicles with zero CO2 emissions.
Tax will be based on CO2 emissions for the first year for vehicles priced more than £40,000. The next year, the rate will depend on the type vehicle as well as an additional rate of £310 a year for the next 5 years.
After 5 years, the vehicle will be taxed at standard rates.
Rohan Gye, DVLA Vehicle Service Manager, said:
“These changes won’t affect any vehicles that are registered before 1 April 2017. So, for anyone who already owns a car or is thinking of buying a used car the rates of vehicle tax will not be changing.”