Vehicle Tax on new vehicles changed from April 2017 and is now calculated on the vehicles CO2 emissions. The majority of vehicles move to a standard annual rate of £140. Vehicles with zero emissions will be exempt from tax but if the list price is over £40,000 there will be an additional £310 per annum for the first 5 years on top of the standard £140 so £460 per annum.
The first years rate on new cars increases from the standard £140 when emissions exceed 110 grams per kilometre right up to a ceiling of £2,000 per annum on emissions in excess of 255 grams per kilometre! So, purchasing a new vehicle over £40,000 with maximum emission levels will become a very costly business.
Go to the DVLA website www.gov.uk/vehicle-tax for full details.
