Beat the Tax Change

On the 1st April 2018 the government will be making changes to the road tax also know as vehicle excise duty (VED). In 2017 road tax in the UK was changed significantly, which saw the cost of road tax increase significantly on a new car. With changes to the road tax coming into force from 1st April 2018, W R Davies have broken this down, so you can understand how the changes are related to CO2 emissions. The new rules only apply to cars, not vans or commercial vehicles. If the car you are looking at already meets the latest Euro 6 emissions standards when tested on the RDE new real-world emissions regime, then the extra charges will not apply.

The cost to run a diesel from the 1st April could increase as much as £560 depending on listed CO2 emission.

The CO2 emmision changes are explained below:


Tax
Band
​CO2
emissions
(g/km)
First Year
Vehicle Excise Duty (VED) 
Diesel 2018​
Save First Year 
Vehicle Excise Duty (VED) 
Diesel 2017 v's 2018​
​     Total       
     Diesel       
     2018
​         
A​​0£0.00​£0.00​​£80.00
​B​1 - 50£25.00​£15.00£105.00​
​C​51 - 75​£105.00​£80.00​£185.00
​D​76 - 90​£125.00​£25.00​£205.00
​E​91 - 100​£145.00​​£25.00£225.00​
F​​101 - 110£165.00​​​£25.00£245.00​
G​​111 - 130​£205.00​£45.00​£285.00
​H​131 - 150​£515.00​£315.00£595.00​
​I​151 - 170£830.00​£330.00​£910.00​
​J171 - 190​​£1,240.00£440.00​£1,320.00​
​K191 - 225​​£1,760.00£560.00​£1,840.00​
​L​226 - 255£2,070.00​​£370.00£2,150.00​
​MOver 255​£2,070.00​​£70.00£2,150.00​

The impact on petrol vehicle car tax could rise by up to £70 per year.

Petrol

​Tax
Band
​CO2
emissions
(g/km)
​First Year
Vehicle Excise Duty (VED)
Petrol 2018
First Year
Vehicle Excise Duty (VED)
Petrol 2017 v's 2018
​Total
  Petrol  
             2018             
A​​0​£0.00​£0.00£80.00​
​B​1 - 50​£10.00​​£0.00​£90.00
​C​51 - 75​£25.00​​£0.00​£105.00
​D​76 - 90​£105.00​£5.00​£185.00
​E​91 - 100​£125.00£5.00​​£205.00
F​​101 - 110​£145.00​​£5.00​£225.00
G​​111 - 130​£165.00​​£5.00​£245.00
​H​131 - 150​£205.00​​£5.00​£285.00
​I​151 - 170​£515.00​£15.00​​£595.00
​J171 - 190​​£830.00​£30.00​£910.00
​K191 - 225​​£1,240.00​£40.00​£1,320.00
​L​226 - 255​£1,760.00​£60.00£1,840.00​
​MOver 255​​£2,070.00£70.00​​£2,150.00

The Vehicle Excise Duty (VED) charged on new cars is based on CO2 emissions* (expressed in grams per kilometer (g/km)). All CO2 emission figures in g/km are from officially approved test under the Passenger Car (Fuel Consumption figures and CO2 Emission Information) Regulations 2001 and in accordance with the EEC Directive 93/116/EC. The chart shows the Bands and the CED which will be levied (for vehicles registered from 1st April 2018 onwards).

If a car's list price is over £40,000 (including VAT and factory fitted options) at first registration, the customer will pay an additional VED rate (Currently £310) for five years after the end of the first registration (in addition to the standard £140 VED charge per year). Changes to the standard VED charge applicable from April 2018 are TBC.