Car Tax 2016-17 | Cocoon Vehicles Ltd

Car Tax 2016-17


The amount of tax you’ll pay to keep a car on the road will depend on the size of the vehicle’s engine or the CO2 emissions and the day it was first registered.

In the recent Budget of March 2016, it was announced that from 1st April 2017, there would be a change to Vehicle Excise Duty for cars registered on or after 1st April 2017.

A ‘First Year Rate’ of Vehicle Excise Duty (VED) will vary according to the CO2 emissions of a vehicle and a flat Standard Rate of £140 will apply in all subsequent years. The only exception will be for zero-emission cars for which the Standard Rate will be £nil.

Cars with a list price of £40,000 and above will have a supplement of £310 in addition to the Standard Rate in the subsequent 5 years.

So, the only cars that will be free of tax from 1st April 2017 will be electric cars, costing less than £40,000 and registered on or after 1st April 2017.

All cars first registered before 1st April 2017 will remain in the current Vehicle Excise Duty system, which will not change.

If you’re looking for a new car, a short-term or a long-term lease why not get in touch? We offer flexible and fixed term contracts and with cars starting at just £199+VAT per month you can afford to treat yourself this Spring.

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  • information correct at the time of writing
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