The Way Vehicle Excise Duty (VED) Is Calculated Is Changing For Some Vehicles Registered From 1 April 2017.
All vehicles registered before this date will not be affected.
The changes, announced by the Chancellor in the 2015 budget, set out that from next year, the first vehicle licence will be calculated on the vehicle’s CO2 emissions.
The majority of vehicles will then move to a standard rate of £140 annually from the second licence. Cars with zero emissions will not pay the standard rate of vehicle tax.
However, if a car’s list price is over £40,000 at first registration, the customer will pay the additional rate for five years after the end of the first licence.