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Only two weeks until the new DVLA vehicle tax rates come into forceBack

DVLA Vehicle Excise Duty (VED) or new vehicle tax rates will change.


  • 1 April 2017: vehicles that are first registered with the DVLA from 1 April 2017 will incur new tax rates. Vehicles registered before 1 April 2017 are not affected.


  • New vehicles registered on or after 1 April 2017 will pay first year rates based on their carbon dioxide (CO2) emissions according to revised CO2 ranges.
  • From the second year and also if the registered keeper changes a flat Standard Rate (SR) of £140 will apply unless the vehicle has zero emission, in which case the rate will be £0.
  • Hybrid and alternative fuel vehicles registered after 1 April 2017 will receive a £10 reduction on the cost of their tax.

Vehicles over £40,000

  • Vehicles with a list price over £40,000 at first registration will incur a supplement of £310 per year in addition to the standard £140 VED cost (£310 + £140 = £450).

(This will be in effect for the first five years of the car’s life)


  • Current tax rates were introduced to impose higher tax rates on more polluting and more expensive cars. However, over the past ten years, cars have become less polluting and today more and more conventional cars do not pay any tax. This has led to a significant fall in tax revenue. The Government has modified the tax in order to address the issue and increase its cash flow.

For more information, please visit:

Posted by Sue Robinson on 17/03/2017