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New Car Tax Bands;

New Car Tax Bands;

New Car Tax Bands; 681 1024 Paul Davies

New Car Tax Bands;

This year’s budget announced a lot of changes in the UK, however, one major change for drivers will be the introduction of new car tax bands.

The new scheme is to be implemented on the 1st April 2017, which may seem far away, but it is always best to be informed as soon as possible so that you can be prepared for the change.

This change will only affect new cars that are registered after the 1st April 2017. The reason that this change has been brought about is because figures highlight an issue with over three quarters of new cars are being exempt from the current car tax bands.

This new car tax bands system will mean that new cars will be paying based on new and updated emissions ratings that are able to also take modern low-emission technologies such as pure-electric cars into account. Following the first year of purchase, there will be three bands named zero emission, standard and premium.

How will this affect me and my car?

Only cars registered AFTER the 1st April 2017 will be affected. This means that cars bought or sold BEFORE April 1st 2017 will not be affected by this new tax band system. This means that they will continue to follow the current tax band scheme in place.

So what kind of changes should we expect?

Here’s a look at the band changes for 2017:

Car tax band changes

New tax bands: April 1st 2017 onwards                                      Current tax bands: registered since 2001

This new policy will affect almost everyone with a new car. This means that you should consider any possible repercussions of the car you choose and how you will be able to budget the appropriate spending for the upcoming year.

It is estimated that this change will bring about an increase in low-emission vehciles such as hybrid and pue-electric vehicles in the UK, as they will be placed in lower tax bands. Moreover, as zero-emission vehicles are exempt from the tax bands scheme altogether, it is likely that there will be a growth in the purchase of zero-emissions vehicles also.

How do I find out my cars’ emission levels?

For all of the information you may need on tax bands and your vehicles co2 emissions, please feel free to visit the GOV website at https://www.gov.uk/co2-and-vehicle-tax-tools.

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