New 2017 road tax VS old road tax
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New 2017 road tax VS old road tax

Introduction

The UK road tax rate are due to change from April 2017. This affects cars registered on or after 1st April 2017.

What were the costs with the old system?

The old system utilised ‘bands’, based on the fuel and CO2 emissions of the car. There was one set of bands for petrol & diesel cars and another for alternative (electric) vehicles. The band that your car was in determined the car tax you paid per year. The bands were are per below:

BandCO2 emissionsPetrol & diesel cost per yearAlternative (electric) cost per year
AUp to 100£0£0
B101 - 110£20£10
C111 - 120£30£20
D121 - 130£110£100
E131 - 140£130£120
F141 - 150£145£135
G151 - 165£185£175
H166 - 175£210£200
I176 - 185£230£220
J186 - 200£270£260
K201 - 225£295£285
L226 - 255£500£490
MOver 255£515£505

What is changing?

The new system will still utilise ‘bands’, based on the fuel type and CO2 emissions of the car. However with the new system, this ‘band’ based system is only used for the initial 1st year of road tax. For 2nd and subsequent years the price paid will fixed at £140 / year for diesel vehicles and £130 / year for petrol vehicles and will be free for electric vehicles.

So what will the 1st year of road tax now cost?

CO2 emissionsPetrol & diesel cost per yearAlternative (electric) cost per year
0£0£0
1 - 50£10£0
51 - 75£25£15
76 - 90£100£90
91 - 100£120£110
101 - 110£140£130
111 - 130£160£150
131 - 150£200£190
151 - 170£500£490
171 - 190£800£790
191 - 225£1,200£1,190
226 - 255£1,700£1,690
Over 255£2,000£1,990

What is the difference in costs between the old and and new system over a 3 year period?

If we assumed you bought your car from new, some costs comparisons for popular vehicles are shown below:

CarFuelCO2 emmisionsOld road tax system cost (over 3 years)New road tax system cost (over 3 years)Difference
VW Golf GTD 5dr manualDiesel125£330£440+£110 (+33%)
VW Golf R 5dr manualPetrol180£690£1060+£370 (+54%)
Ford Focus 1.0EcoBoost 99g 100 StopStartPetrol99£0£285+£285
Vauxhall Astra Energy 1.0i Turbo (105PS) Start/Stop ecoFLEX manualPetrol104£60£400+£340 (+340%)
BMW M3 saloonPetrol204£885£1460+£575 (+65%)
Toyota Prius 1.8 ActivePetrol Hybrid70£0£15+£15

What about costs for used cars – say if I bought 1 year old car?

If we assumed you bought your car when it was just over a year old, some costs comparisons for popular vehicles are shown below:

CarFuelCO2 emmisionsOld road tax system cost (over 3 years)New road tax system cost (over 3 years)Difference
VW Golf GTD 5dr manualDiesel125£330£420+£90 (+28%)
VW Golf R 5dr manualPetrol180£690£390-£300 (-43%)
Ford Focus 1.0EcoBoost 99g 100 StopStartPetrol99£0£390+£390
Vauxhall Astra Energy 1.0i Turbo (105PS) Start/Stop ecoFLEX manualPetrol104£60£390+£330 (+550%)
BMW M3 saloonPetrol204£885£390-£495 (-56%)
Toyota Prius 1.8 ActivePetrol Hybrid70£0£0

Summary

The loosers are clearly people who buy from new as in all cases we looked at, the initial cost is higher than it was with the last system. Electric / hybrid cars have the least difference with only a marginal increase when buying from new and the same £0 tax cost when buying used.

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