Car Tax Calculator

Tax bands for cars registered after April 2017

The Chancellor at the time (George Osborne) changed the way that tax was calculated from 8^th July 2015. This means that effective from April 2017 onwards, the rates of Vehicle Excise Duty (VED) or road tax as it is commonly known, was altered. There are more exempt cars on the road in terms of electric cars so the other bands have been changed to reflect this.

From 1^st April 2017, the new bands come into effect and any car registered after this date will be assessed according to the new rules. The CO2 emissions are the basis for the level of tax levied. Only cars that have no emissions will be exempt and pay no car tax.

There will be a fee of £165 for all cars that are not classified as zero-emission after year one and the income generated for the government has been earmarked for improvements to the road network, in the form of road building and repairs to existing roads.

There are slightly different rules for new cars valued at over £40,000 –

• In the first 5 years, the road tax will be an extra £355 every year;
• After 5 years it will revert back to standard rates.

You might also want to use our Car Depreciation Calculator