2017 Road Tax Rule Changes

The rules regarding Vehicle Excise Duty (VED) - otherwise known as road tax - are changing from the beginning of April. The new rules will apply to any brand new car registered on or after 1st April 2017. Cars registered before this date will continue to use the previous tax rates.

The changes are designed to raise additional revenue for the Exchequer from the popular, eco-friendly cars that are currently exempt. Consequently, buyers of these cars will see the biggest changes.

Once the changes come into effect, new cars will be liable for a one-off road tax charge in the first year, and a flat-rate charge of £140 in every subsequent year. The cost of the one-off charge depends on the CO 2 tailpipe emissions, and can range from £10 to £2,000.

The only cars that will be exempt are those with absolute zero CO 2 emissions: essentially, electric vehicles and hydrogen fuel cell vehicles. These include the Renault ZOE and Nissan LEAF.

In addition, any car with a list price of £40,000 or more - even zero-emissions vehicles - will be subject to an additional £310 ‘Premium’ supplement every year until it’s five years old. If you buy a cheaper model and load it up with factory-fitted options that push it over £40,000, you’ll also be charged the supplement. Dealer discounts will not be taken into account.

Our at-a-glance table outlines the cost of taxing a brand new car from 1st April 2017:

VED car tax bands from 1st April 2017

Emissions (g/km of CO2)

First year

Each subsequent year



























Over 255


Some models stocked at Toomey Basildon emit less than 100g/km of CO2. These include some versions of the:

  • Citroën C1, Citroën C3, Citroën C4, Citroën C4 Cactus, Citroën C4 Picasso
  • Dacia Sandero, Dacia Sandero Stepway, Dacia Logan MCV
  • DS 3
  • Nissan Micra (2017 model), Nissan Note, Nissan Qashqai
  • Peugeot 108, Peugeot 208, Peugeot 2008, Peugeot 308
  • Renault Twingo, Renault Clio, Renault Captur, Renault Megane, Renault Scenic/Grand Scenic, Renault Kadjar
  • Vauxhall Corsa, Vauxhall Astra, Vauxhall Insignia

If registered before 1st April, these low-emitting vehicles are exempt from road tax for the lifetime of the car. If you are thinking of buying one of these vehicles, order now to potentially save hundreds of pounds over the lifetime of your ownership.

Other popular models stocked at Toomey Basildon will also be affected. Any vehicle that emits just over 100g/km - such as the Nissan Juke dCi - are currently exempt from road tax in year one and pay just £20 a year thereafter. Under new rules, it will cost £140 annually.

Furthermore, those emitting more than 151g/km - such as some petrol versions of the Vauxhall Mokka X - will cost £500 to tax in the first year (compared to £185 today), although the subsequent annual cost will then drop from £185 to £140.

If you want to enjoy the lower road tax rates that apply to today’s cars, buy and register your new car before 1st April 2017. Our friendly and helpful team can guide you through all of the models that qualify for low tax rates and are in stock to purchase today.