WARNING - NEW TAX RULES START IN:
Vehicle Excise Duty increases from 1st April
First year VED ranges from £10 to £2,000
VED for year 2 onwards is £140 for ALL cars
£380 increase on many small cars over the first three years

Changes to VED – What You Need to Know

From April 1 2017, newly registered cars will be affected by the new changes to VED, or road tax. It is important to understand these government changes. Tighter legislation based on a car’s CO² emissions means that many popular cars will incur an increase of costs on road tax. At Turner Motor Group, we recommend purchasing a new model before the changes take effect. Our friendly team are on hand to answer your questions, but here are the key things you need to know about the changes:

  • New cars registered on or after April 1st 2017 will be affected by the changes
  • The only cars completely exempt from road tax are zero emissions models
  • Every car will pay a first year rate, dependent on the level of its CO² emissions
  • Every car will pay a fixed rate of £140 per year after the first year
  • Any car purchased for more than £40,000 brand new will pay an additional £310 a year for five years, including zero emissions models purchased at a cost higher than this bracket
  • Cars already on the road will not be affected and will be charged at the old tax rates

Here is a full breakdown of how VED levies will change for a selection of Hyundai vehicles from 1st April:

Vehicle My Vehicle

EXISTING VED COSTS
VED COSTS FROM 1ST APRIL 2017
VEHICLE CO2 YEAR 1 YEARS 2/3 1ST 3 YEARS YEAR 1 YEARS 2/3 1ST 3 YEARS DIFFERENCE
Hyundai i10 1.0 66PS Petrol Manual 108g/km Free £20 £40 £140 £140 £400 + £380
Hyundai Ioniq 1.6 Petrol 141PS DCT Automatic 79g/km Free Free Free £100 £140 £380 + £380
Hyundai i20 1.2 75PS Petrol Manual 119g/km Free £30 £60 £160 £140 £440 + £380
Hyundai ix20 1.4 Petrol Blue Drive Manual 130g/km Free £110 £220 £160 £140 £440 + £220
Hyundai Santa Fe 2.2 CRDi 200PS Diesel Blue Drive 4WD Automatic 174g/km £210 £210 £630 £800 £140 £1080 + £450
Hyundai Tucson 1.7 CRDi Diesel Manual Blue Drive 119g/km Free £30 £60 £160 £140 £440 + £380

The changes show that popular small cars, such as the Hyundai i10, may cost more than they used to if you choose to purchase them after April 1 2017. High-end models that cost more than £40,000 will also cost a lot more than they did prior to the change in terms of tax due to an annual levy of £310 over the first five years of ownership, regardless of their CO²