All You Need To Know About The 2017 VED Changes



Big changes are happening on the 1st April 2017 to the way Vehicle Excise Duty - VED (also known as Road Tax, Car Tax, Road Fund License (RFL), the Tax Disc, Car Duty) is calculated, and the rates associated with it.

This change has become known as the 'VED Reform' and will affect any new car registrations from the 1st April 2017. Cars purchased before the reform date will not be affected, it will also not impact other vehicle types such as Commercial Vehicles, Motorbikes, HGVs.

Current VED Rules

  • VED is currently based on the CO2 emissions of the vehicle. The higher the CO2 emissions, the more VED is paid on the vehicle.
  • There is one rate for the first year (First License Rate) and another for the second and following years (Standard Rate). Both the Standard Rate and the First License Rate increase with the CO2 emissions.

New VED Rules

  • From April 2017, the First Year License Rate will continue to be related to the CO2 emissions of the vehicle however the bands are going to change and this means that rates due will be increased.
  • The Biggest change is that in the second and subsequent years the 'Standard' rate of VED will be related to the list price of the vehicle and no longer related to the CO2.
  • There will be two brackets the vehicle can fall under, vehicles with a 'List Price' of £40,000 or less OR Vehicles with a 'List Price' over £40,000.
  • For vehicles in the £40,000 or less bracket the rate will be £140. For Vehicles with a 'List Price' of over £40,000 and 'additional rate' of £310 (totaling £450) will be due for 5 Years from the end of the First Year License.
  • After the 'Additional rate' expires the £450 will revert to £140 or whatever the prevailing rate is at the time.

Will this affect my current car?

No. Your current car, or any car purchased and registered before the 1st April 2017, will be exempt from the changes and will continue under the current VED system, meaning that more than likely you will be better off.

What this means is that there couldn't be a better time to buy your new Land Rover as you are likely to make substantial savings. So why not contact our sales team to find out how much you could save.

For more information visit the HMRC VED Reform website: https://www.gov.uk/government/publications/vehicle...