Important changes to Car Road Tax...ACT NOW!

From 1st April 2017, big changes are being made to the road tax system in the UK. Currently low-emission petrol and diesel cars are tax exempt. The new VED tax system will only be free for vehicles with ZERO emissions (like the Nissan LEAF electric car). All other cars will pay a flat rate of £140 per year.


What does this mean for you?

Pretty much every car will cost more to tax, if it is registered after 1st April 2017. It is important to emphasise though, that these tax changes do not apply retrospectively, so only brand new cars from 1st April are taxed under the new system. Therefore we would advise making the most of the reduced taxation limits and come in to see what incredible pre-tax change deals we have on offer at Chorley Group!


How much can you save?

Under the current system, a car with emissions below 100g/km CO2 would have been free tax. Under the new system, they will pay up to £120 in the first year, and a flat rate of £140 per year thereafter. If a car was just over the 100g/km mark (say, 104g/km), under the old system they’d pay £20 per year, but now will pay £140 per year.

Another factor is that the government is placing additional taxation on cars which cost over £40,000. This is an extra tax of £310 annually on top of the £140 standard rate, making the tax £450 per year.

The reasons behind all this is clear – under the current scheme, the exchequer was earning less and less every year as car manufacturers strive to make vehicles more fuel efficient. So the vehicles which get hit hardest by the new rules are the most popular eco-friendly models.

“The 2017 changes will mean a car that is CO2 rated at 100g/km or lower – and thus free of road tax for life under the current VED band system – will cost its owner £400 over three years, £680 over 5 years, or a whopping £1,380 over ten years. If you can buy the same car before the April 1st deadline, you’d be mad not to.”Auto Express Magazine, Jan 2017



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