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Taxi Newsroom
  • 06/01/2017

    Vehicle Tax Rates Set to Change

    Vehicle Tax Rates Set to Change

    Vehicle Tax Rates Set to Change


    From 1st April 2017 the way vehicle tax is calculated is set to change, with all vehicles purchased after that date subject to new tax requirements.

    New rates are still calculated on vehicle emissions; however, rather than being set at a consistent yearly fee, after 12 months rates will lower. This means that the initial new rates for vehicles may seem much higher, ranging from £10 for the first year, up to £2000 for the highest emission vehicles. In addition, drivers will not initially able to pay in 6 monthly installments, only having the choice to do so after the first 12 months of ownership.

    However, rates for new vehicles will lower significantly after the first 12 months, with drivers of petrol and diesel vehicles paying £140, and drivers of alternative fuel vehicles paying £130.

    Drivers of vehicles costing more than £40,000 will be faced with slightly different rates. Although the rate for the first 12 months remains the same, these drivers will have to pay an additional rate of £310 a year for the following 5 years of ownership. That means drivers of petrol or diesel vehicles costing above £40,000 will pay a total of £450 a year, and those with alternative vehicles will pay £440.

    However, drivers of electric vehicles costing below £40,000 will be exempt from charges. Those driving vehicles above £40,000 will only be required to pay the £310 surcharge for the first 5 years of ownership, but after this time period will not be required to pay any vehicle tax. With that in mind, investing in an electric car would be a good move for drivers looking to save money when purchasing a new vehicle after April 2017. If you’d like to find out more about the electric car deals we can offer to taxi drivers at The Taxi Centre, get in touch with us today.

    A full list of the new tax bands can be seen on the website here.               


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