New Car Tax rates in April 2024

Uncletech

I bought a low emissions petrol car after a lot of research and was pleasantly surprised to find that my Vehicle Excise Duty was only £30.00 per annum because the emissions are only 114gms per litre. This is a huge incentive for those will little money and also saves the planet. However, I now see that the government is changing the VED in April so that almost everyone who registered a vehicle from April 2017 until March 2023 pays the same level of tax irrespective of the emissions, that mount being £180.00 per annum.

What annoys me most is that my car was first taxed in April 2017. If it had been registered one month earlier, the tax would only be £35.00.

It seems to me not only unfair for those who have low emission vehicles like mine but also, there is no incentive whatever for people to buy more eco-friendly vehicles. Although diesel cars have lower emissions than petrol cars, they emit nano particles and more nitrous dioxide, which are both harmful.

What is the government thinking of?

LightFlare

Anyone would think those in power don't want the masses to have the ability to move freely around the country unless its via "public"transport

Mark_d

When rules change the government need to select a date when the new rules will become effective.

https://www.gov.uk/government/news/new-vehicle-tax-rates-from-1-april-2017

The above page is dated January 2017.  Perhaps you should have read it and registered your vehicles one month earlier.

In response to @LightFlare - As the population grows and everyone wants more freedom, do you think every person should have a car on the road?  Do you think that this could lead to efficient transport?  Is it efficient or environmentally friendly to be producing millions of new cars each year?  Public transport alone, in its current form, might not be the answer but I think we do need to find an answer that does not involve everyone having their own car.

Mildly_Miffed

They changed it in 2017 because the CO2 banding had been very effective.

In 2016, the average new car in the UK was £30 VED. The last time it'd been £30 was the early '70s.

The current flat rate is still cheap - a pre-CO2 1550cc+ car is now £325, and a <1550cc car is £200. We just got spoiled by those few years of stupidly, unsustainably cheap low-CO2 tax.

The last time there was a retrospective change to the way VED is calculated was 1999, when it went from a single flat rate, to two bands split by engine size. Every change since then has been for new cars only...

2001 - CO2 bands introduced.
2006 - two extra top bands introduced.
2017 - flat-rate reintroduced.

BJV

I feel your pain. It does sound unfair. I know there must be a cut-off, but one month!

I have just changed my car from diesel to electric, saving over £47.00 per month in Road fund tax.

It's stupid as the time I use the car won't change.

The time spent on public roads won't go down. I am lucky I could make the jump, but more could be done to encourage people to make the change.

Years ago, there was an incentive, government grants, to buy electric cars, which was fine, but as the cars themselves were so expensive, even though I wanted to make the change, I could not afford to.

Only now, as the prices have come down, have we been able to.

As the population grows, yes, we need a better infrastructure, but lots of local councils are bringing in the 15-minute city planning. Which is a bit scary!!! Convienance or control ???? MMM, I am not sure.

In response to Mark D, yes, we need to find a better way, but 15-minute cities IMO are, by design, made to limit the need to move around and make it more difficult if you do want to move around. Also punishing those who can not afford to make an environmental choice is not the way. Also, when you buy a used car, you do not get to change the date of registration, so I think what the OP was trying to point out is that for a month's difference, they will end up paying more. 

It is the old carrot and stick trick. Change to something more eco-friendly, or you will pay. Why not go the other way and encourage people to use public transport by making it affordable and reliable? 

I live 10 minutes walk from a station and work about 5 minutes from another. I can not use the train as they are unreliable and expensive.

Car_54

Could the OP not SORN his car before the rate rise, and then re-tax it for a further year at the old rate?

Dave_5150

This isn't a new or retrospective change. This GOV.UK page from 8 July 2015 sets out the changes that would apply the new car registrations from 1 April 2017. 

https://www.gov.uk/government/publications/vehicle-excise-duty/vehicle-excise-duty

Mildly_Miffed

Car_54 said:

Could the OP not SORN his car before the rate rise, and then re-tax it for a further year at the old rate?

It'll only go up a tenner, from £180 to £190, in April.

The OP's just confused, and thinks his post-April 2017 flat-rate-taxed car should be CO2 taxed - it never would have been from new.

Post-April 2017 electric cars lose their £0 VED in 2025, and will go to the same tax rate as everything else.

facade

Uncletech said:

I bought a low emissions petrol car after a lot of research and was pleasantly surprised to find that my Vehicle Excise Duty was only £30.00 per annum because the emissions are only 114gms per litre. This is a huge incentive for those will little money and also saves the planet. However, I now see that the government is changing the VED in April so that almost everyone who registered a vehicle from April 2017 until March 2023 pays the same level of tax irrespective of the emissions, that mount being £180.00 per annum.

What annoys me most is that my car was first taxed in April 2017. If it had been registered one month earlier, the tax would only be £35.00.

It seems to me not only unfair for those who have low emission vehicles like mine but also, there is no incentive whatever for people to buy more eco-friendly vehicles. Although diesel cars have lower emissions than petrol cars, they emit nano particles and more nitrous dioxide, which are both harmful.

What is the government thinking of?

Er.....

This actually happened in 2017. How have you managed to pay £30 a year since then, when your tax rate should have been whatever the £180 was worth then? (Remember VED increases with whatever inflation index is inappropriate for working out pensions)

The thing that is changing is electric vehicles are going to have to pay VED, and by all accounts that is going to be backdated to 2017 registrations (presumably because there were a lot of EVs registered between then and now who are "getting away" without paying tax, and they suspect there aren't going to be as many in future)

uknick

Uncletech said:

I bought a low emissions petrol car after a lot of research and was pleasantly surprised to find that my Vehicle Excise Duty was only £30.00 per annum because the emissions are only 114gms per litre. This is a huge incentive for those will little money and also saves the planet. However, I now see that the government is changing the VED in April so that almost everyone who registered a vehicle from April 2017 until March 2023 pays the same level of tax irrespective of the emissions, that mount being £180.00 per annum.

What annoys me most is that my car was first taxed in April 2017. If it had been registered one month earlier, the tax would only be £35.00.

It seems to me not only unfair for those who have low emission vehicles like mine but also, there is no incentive whatever for people to buy more eco-friendly vehicles. Although diesel cars have lower emissions than petrol cars, they emit nano particles and more nitrous dioxide, which are both harmful.

What is the government thinking of?

I drive a BMW i3s REX.  The 650cc REX petrol engine rated at 13g/km does about 300 miles per year . My other 8k miles per year is pure electric with zero emissions.  (I need the REX comfort blanket as it's my only car and I can't afford to be caught out for the couple of journeys a year I do that need a fuel refill)

As it was first registered after March 2017 for the first 3 years I paid about £450 per year which includes hybrid car road fund and luxury car tax.  Now it's about £150 per year as the luxury tax has finished.

At worst my car emits about 1/10 CO2 than yours, so what's your point?

beatthebookienet

I'll give you a clue... vehicle tax is nothing to do with being green. There's nothing green about scrapping perfectly good cars only to mine tons of metal from the earth and transport it all over the world to manufacture a new one to replace it with.

Currently the option which makes the most sense financially is to go for a 10 year old diesel with £20/£35 per year rate. Although those who spend £35,000+ on a new car to brag about saving £30 on road tax will tell you otherwise