Car advice from Donnelly Motors
Wednesday 8th March 2017
Many thanks to our friends from Donnelly Motors for making us aware of the following changes coming in that affect your car.
The new VED (Vehicle Excise Duty) tax rules are coming into force on the 1st April 2017 and could change how much you pay to keep your vehicle on the road. The new system seems a little confusing however and the changes mean that 7 out of 10 drivers could end up spending more under the new revised VED tax bands.
Drivers of same of the more popular cars could be looking at an increase of car tax of up to £900 over the next five years. Low emission vehicles will not be as tax efficient as they were before.
Hybrid cars currently pay zero tax but will pay £10 in the first year and £140 thereafter. Zero emission cars will pay zero tax.
Standard cars (emissions above zero) will pay £140 and luxury cars over £40,000 will pay £310 for 5 years.
Cars will also be rated on their Carbon Dioxide emissions and will pay a one off VED between zero to £2000. Electric and Hydrogen cars are excluded. Tax wise it may be cheaper to purchase a new lower emission car before the new VED changes come into play. More information on the new changes can be found on the DVLA website.
https://www.gov.uk/government/news/new-vehicle-tax-rates-from-1-april-2017
