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Press release: One month to go until new vehicle tax rates come into force

DVLA is reminding motorists that there is just one month to go until new vehicle tax rates come into force for all cars and some motor homes that are first registered from 1 April 2017.

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. However, anyone considering buying a new car that will be first registered from 1 April should check the vehicle tax rates table on GOV.UK to find out how much they’ll pay.

Under the changes, vehicle tax for the first year will continue to be based on CO2 emissions. After the first year, the amount of tax to pay will depend on the type of vehicle. The new rates are:

  • £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

In addition, for vehicles with a list price of more than £40,000, the rate of tax is based on CO2 emissions for the first year. After the first year, the rate depends on the type of vehicle (petrol, diesel, zero emission etc) and an additional rate of £310 a year for the next 5 years. After those 5 years, the vehicle will then be taxed at one of the standard rates (£140, £130 or £0) depending on the vehicle.

There is also further information available on the changes.

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HM Government • • •