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New VED Road Tax Bands for New Vehicles from 1st April 2017

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New VED Road Tax Bands for New Vehicles from 1st April 2017
Back in 2015, then Chancellor of the Exchequer, George Osbourne announced measures to increase Vehicle Excise Duty (VED), more commonly known as "Road Tax" for new vehicles. Mr Osbourne stated " ‘Every penny of VED paid by the population's cars will now be used to improve the roads that people drive on", something which historically wasn't the case - Road Tax fell into the Chancellor's coffers along with other taxation and it was up to local authorities to maintain and improve Britain's road network.
 
Roll on to 2017, and the increases are almost upon us (1st April 2017). Many new (we must stress, this increase applies to new cars only) cars will be hit by 3 year VED increases of up to 933% although electric cars will continue to be exempt from any VED payment.
 
 
Q & A
 
What are the new VED bands for new cars from 1st April 2017?
 
vehicle excise duty 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Does this change to Road Tax affect me?
 
It will not affect any current car on the road, only new cars registered AFTER 1st April 2017.  The only new cars exempt from VED after 1st April 2017 will be electric cars with 0g/km emissions. If your car was registered between 2001 and 1st April 2017 you will continue to pay the rates of VED then the table below continues to apply;
 
12-month Vehicle Excise Duty rates for cars registered since 1st March 2001*
VED BandVehicle
CO2 emissions
Standard rate 
2016-2017
First year rate 
2016-2017
Standard rate 
Green car
2016-2017
First year rate 
Green car
2016-2017
AUp to 100 g/km£0£0£0£0
B101-110 g/km£20£0£10£0
C111-120 g/km£30£0£20£0
D121-130 g/km£110£0£100£0
E131-140 g/km£130£130£120£120
F141-150 g/km£145£145£135£135
G151-165 g/km£185£185£175£175
H166-175 g/km£210£300£200£290
I176-185 g/km£230£355£220£345
J186-200 g/km£270£500£260£490
K*201-225 g/km£295£650£285£640
L226-255 g/km£500£885£490£875
MOver 255 g/km£515£1120£505£1110
 
 
What about Company Car Tax (CCT) Rates, will they change too?
 
The Company Car Tax Rates were announced in the March 2015 budget and the planned incremental increases (seen in the table below) until 2020 remain unchanged.
 
Company car tax is designed to encourage employers and company car drivers to choose cars with lower levels of CO2 emissions; incentives are offered both to the company and to the recipient of the vehicle to select low emission vehicles.
 
Company Car Tax BIK Rates 2015-20: HMRC Fuel Type D (diesel cars) and A (other cars)
Vehicle CO2  
g/km
2015-16
%BIK Rate         
2016-17
%BIK Rate         
2017-18
%BIK Rate         
2018-19
%BIK Rate         
2019-20
%BIK Rate         
PetrolDieselPetrolDieselPetrolDieselPetrolDieselPetrolDiesel
1-505 7 9 13 16 
51-759 11 13 16 19 
76-9413161518172019222225
95-9914171619182120232326
100-10415181720192221242427
105-10916191821202322252528
110-11417201922212423262629
115-11918212023222524272730
120-12419222124232625282831
125-12920232225242726292932
130-13421242326252827303033
135-13922252427262928313134
140-14423262528273029323235
145-14924272629283130333336
150-15425282730293231343437
155-15926292831303332353537
160-16427302932313433363637
165-16928313033323534373737
170-17429323134333635373737
175-17930333235343736373737
180-18431343336353737373737
185-18932353437363737373737
190-19433363537373737373737
195-19934373637373737373737
200-20435373737373737373737
205-20936373737373737373737
210-21437373737373737373737
215-21937373737373737373737
220-22437373737373737373737
225-22937373737373737373737
230 or above37373737373737373737