The way vehicle tax is calculated will change for cars and some motor homes that are first registered with DVLA from 1 April 2017.








Here is what you need to know if you’re thinking about buying a new vehicle.
You’re not affected if your vehicle was registered before 1 April 2017 - check your vehicle tax rate to find out how much you’ll need to pay.

The new rates

The amount you pay the first time you tax your vehicle is based on CO2 emissions. Check the vehicle tax rate tables to find out how much you need to pay.
The amount you pay the second time you tax the vehicle depends on the type of vehicle. You’ll pay:

• £140 a year for normal petrol or diesel vehicles
• £130 a year for alternative fuel vehicles (hybrids, bi-ethanol and LPG)
• £0 a year for vehicles with zero CO2 emissions

New vehicles that cost more than £40,000

If you buy a vehicle with a list price (the published price before any discounts) of more than £40,000, you’ll pay a rate based on CO2 emissions the first time it’s taxed.
When you tax it for the second time you’ll pay one of the new rates (depending on the vehicle) and an additional rate of £310 a year for the next 5 years.
After 5 years, your vehicle will then be taxed at one of the new rates again.
Check the list price with your dealer so you know how much vehicle tax you’ll have to pay.

Know your vehicle tax rate

You can check the tax rates for all vehicles if you’re thinking about buying a new or used vehicle.
You can also apply for discount on your vehicle tax if you claim certain benefits.

The Car tax system should revert to how it was years ago, when it was priced in accordance with the cc (Engine Size) of your vehicle. There has been an upsurge in these so called 4X4 Chelsea Tractors and large cars. If they can afford £40K plus for a car (or ego booster) then they should be paying at least a grand per year in road tax!! and Diesels a damn sight more coz they stink!! ARGHHHHH

Originally Posted by thunderbird4

The Car tax system should revert to how it was years ago, when it was priced in accordance with the cc (Engine Size) of your vehicle. There has been an upsurge in these so called 4X4 Chelsea Tractors and large cars. If they can afford £40K plus for a car (or ego booster) then they should be paying at least a grand per year in road tax!! and Diesels a damn sight more coz they stink!! ARGHHHHH

Rubbish.

Bigdavesdad. Agree with you, also remember that in order to
pay 40,000 that to get there, you've probably paid around
15,000 in vat .
Just shove 40p on a litre and scrap road tax. Think of all
the savings made .

Originally Posted by ausard2

Bigdavesdad. Agree with you, also remember that in order to
pay 40,000 that to get there, you've probably paid around
15,000 in vat .
Just shove 40p on a litre and scrap road tax. Think of all
the savings made .

I think that you meant income tax, but actually to earn enough to spend £40k on a car you will be paying higher rate tax, so you will have paid around £26,700 in income tax and that price would include about £16,600 in VAT. As it happens, for much of the time you would be owning a new £40k car, you would also be paying £450 a year emissions tax.

One of these things I would guess costs around £800 per year to insure - which is around a £100 per annum on IPT.

一No, vat is what I said, and vat is what you will pay.

一No, vat is what I said, and vat is what you will pay.

Originally Posted by ausard2

Bigdavesdad. Agree with you, also remember that in order to
pay 40,000 that to get there, you've probably paid around
15,000 in vat .
Just shove 40p on a litre and scrap road tax. Think of all
the savings made .

I drive 2/3000 miles a year, based on so called emissions why does someone driving 20/30000 miles pay only the same as me whilst they generate 10 times the pollution but not 10 times the tax?