Vehicle Tax Changes: How does it affect you?
As you may have seen or heard in the news Vehicle Excise Duty (VED), Vehicle Tax to you and I, will be changing on the 1st April. The changes coming into effect include an additional rate to be added to the tax for all new vehicles with a list price of over £40k. The additional rate of £310 will be payable for a period of 5 years, after the 5 year period the standard rate will then be applied. On top of this, zero emission vehicles will have a standard rate of £0 but if the list price is over £40k they will pay the additional rate of £310 a year for the 5 years.
So when is the best time to buy a new vehicle from Citygate?
If you purchase your car or commercial vehicle before 1st April 2017, these changes won’t affect you as they only apply to vehicles registered on or after that date. Your VED (Vehicle Tax) will continue to be calculated using the old format based on CO2 emissions. The 2017 changes will mean a vehicle that is CO2 rated at 100g/km or lower, currently free of vehicle tax, will now cost £400 over 3 years, £680 over 5 years and £1,380 over a 10 year period. Meaning it makes financial sense to buy the same vehicle before the 1st April deadline to make the savings. Alternatively purchasing a vehicle rated at 226g/km of CO2 or above, and if you intend to run that vehicle for a number of years, you will certainly benefit financially. Buying it after the 1st April deadline could save you £600 over 5 years or just under £2,500 if you keep it for 10 years.
When purchasing a vehicle, we want to make sure you get the best advice that helps find the right vehicle for you, your family or your business. Speak to your local Citygate Dealership for advice from our experts on how the changes may affect the purchase of your new vehicle.
For more information, you can also download the Driver & Vehicle Licensing Agency PDF here.