In the 2016 Autumn Statement, huge changes to the UK road tax system were announced for all new vehicles. Below we explain the changes in more detail, discover what they will mean for you, and most importantly, explain what you can do to keep the tax increase at bay that little while longer!
From April 2017, the amount you pay for VED (also known as road tax) on brand new vehicles will increase for 7 out of 10 vehicle owners and some drivers may have to pay VED for the first time.
As cars have become more economically 'efficient', the Chancellor has been hit in the pocket! Despite manufacturers efforts and consumers moving to cleaner cars, the motorist is now going to have to pay higher tax charges to make up for the cash lost by low-emissions vehicles that previously didn’t attract any road tax.
Anyone buying a brand-new car or motorhome registered after 1 April, 2017 will now pay the first year's tax based on the vehicle’s CO2 emissions – however this first year payment will be based on heavily revised calculations which will see the charges double from current levels.
The first year rate, depending on the vehicle's CO2 emissions will now range from £0 (for zero emission cars only) up to a massive £2,000. From the second year onward, a flat fee of £140 will apply to all vehicles that are anywhere above zero emissions (except hybrid/alternative fuel cars, which will receive a £10 discount on the standard rate). In addition to the taxation on the car's emissions, any cars with a value of £40,000 or above at the time of registration will also pay an extra £310 per year for the first five years, as a 'premium' car tax.
Buyers of new Ford cars such as the 5.0 Ford Mustang V8 could save up to £245 over four years, if they buy their new model after the 1st April 2017. In contrast, buyers of Britain's best-selling new Ford Fiesta with the 1.0 EcoBoost 100PS will be set to pay £540 more over four years than if they buy their new model before the changes come in. That's despite the Ford Mustang emitting three times the amount of CO2 than the Fiesta!
You will only be affected by this change if you are buying your brand new Ford on or after 1st April, 2017 as the tax rates for new vehicles registered before this date will be calculated as they are now so the simple answer... Beat the 2017 VED changes and buy your new Ford now! That's it. Any car purchased and registered before April 2017 will continue to be taxed under the current system so, buying before April could save you a considerable amount of money!
Plus, cars that have already been pre-registered (before April 2017), such as in-stock new cars or ex-demonstrator models for sale at TC Harrison, now will not be affected by the increase.View our New Car Offers NowView the new Ford car range at TCH
|CO2 Emissions (g/km)||First Year Rate||Standard Rate (from 2nd year onward)*|
|>0 (Hybrid/Alternative Fuel)||£10.00||£130.00|
|1 - 50||£10.00||£140.00|
|51 - 75||£25.00||£140.00|
|76 - 90||£100.00||£140.00|
|91 - 100||£120.00||£140.00|
|101 - 110||£140.00||£140.00|
|111 - 130||£160.00||£140.00|
|131 - 150||£200.00||£140.00|
|151 - 170||£500.00||£140.00|
|171 - 190||£800.00||£140.00|
|191 - 225||£1,200.00||£140.00|
|226 - 255||£1,700.00||£140.00|
*Cars worth over £40,000 at the time of purchase will pay an extra £310.00 for 5 years
If you would like any more information about how road tax is changing, or how it might affect you or the new car you are thinking of buying, contact your local TC Harrison Ford dealership in Burton, Derby, Huntingdon, Peterborough, Spalding, Stamford or St Neots, who will be happy to assist with any queries you may have.
Also, don't forget, you can avoid the tax changes by purchasing and registering your new car before April 2017; view our new car offers here and find the perfect car for the perfect price with TC Harrison Ford.
Retail customers only. Contact your local TCH Ford Dealership for more details. Finance is subject to status and available to customers over 18 – guarantees and indemnities may be required. Freepost Ford Credit. A finance facility fee (where applicable) is an additional charge for the supply of credit and is payable with the first instalment. Deposit allowances only available with Ford Credit. You will not own the vehicle until all repayments have been made. Full written details are available on request.
T. C. Harrison Group Limited, Milford House, Mill Street, Bakewell, Derbyshire, DE45 1HH acts as a credit broker in relation to financial products and not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers who may reward us for introducing you to them. T. C. Harrison Group Limited is authorised and regulated by the Financial Conduct Authority.