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Everything road tax , Britain's road tax system is undergoing a major overhaul in an effort to modernise the system and save the government money.
Copyright © 2012 Autos Post, All trademarks are the property of the respective trademark owners. For the time being at least, both the first-year and annual VED rates are governed by CO2 emissions.
Former Chancellor George Osborne announced major changes to car taxation in the summer 2015 Budget statement, with a new tax system for the first year of a car's life to kick in from 2017. The proposed change has been criticised by the Society of Motor Manufacturers and Traders (SMMT) for only giving a tax break to buyers of all-electric cars rather than low-emission vehicles, and for unduly punishing buyers of more expensive cars. He has also announced the creation of a road fund, into which all the money raised from Vehicle Excise Duty, or road tax, will go. In addition, there will be a consultation on extending the time allowed before the first MOT of a car's life from three years to four. The 13 bands above will govern the tax during the first year of a car's life, with cleaner cars paying less than those that produce lots of CO2. From year two onwards this will change to just three bands: Zero Emission, Standard and Premium.

Cars that cost more than A?40,000 will pay a A?310 premium on top of this for the next five years of a car's life.
Osborne claimed that 95% of cars will pay the A?140 rate, compared with the current average of A?166. These changes only apply to cars registered on or after 1 April 2017, so current cars (everything registered from 1 March 2001) will continue to operate on the existing system outlined at the top of this story. Calculate cars with low co2 emissions with the Fleet News CO2 emissions calculator to find the lowest emitting vehicles available on the market today.
The carbon emissions of grid powered electric cars in countries with coal based generation are no different to average petrol vehicles, while in countries with low.
Check fuel consumption, CO2 emissions and vehicle tax bands by make model and registration. These are 2017 rates of Vehicle Excise Duty (also known as car tax or road tax) as announced in Summer Budget 2015.
The money will be spent on improving the UK's roads from the end of this decade onwards.
While we are pleased that zero-emission cars will, on the whole, remain exempt from VED, the new regime will disincentivise take up of low emission vehicles.

Cars with engines up to 1549cc cost A?145 per year, while vehicles with engines of 1550cc and above cost A?230. The Act requires the UK Government to reduce greenhouse gas emissions by at least 34 by 2020.
This legislation is the cornerstone of the EU s strategy to improve the fuel economy of cars. This fact sheet provides emission rates and calculations consistent with epa s regulatory work. New technologies such as plug-in hybrid, the fastest growing ultra low emission vehicle segment, will not benefit from long-term VED incentive, threatening the ability of the UK and the UK automotive sector to meet ever stricter CO2 targets.

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