From the 1st of April 2017, the way Road Tax or Vehicle Excise Duty (VED) is calculated and applied to new cars will change. At Pentland Land Rover we want to make sure you are aware of these changes when considering your next new vehicle purchase.


It is also worth noting that the CO2 emissions bandings will be changing and you may end up paying more in your first year and over the course of your vehicle ownership.

While your first years VED charge will still be based on the CO2 emissions of your vehicle, the next 4 years of charges will be based on the DVLA list price of the car. This list price isn’t just the cost of the vehicle itself, but of the vehicle plus any additional manufacturer fit options you specify at point of purchase, such as metallic or special paints and enhanced navigation or entertainment systems.

For cars with a DVLA list price of £40,000 or below, the annual charge for a petrol or diesel vehicle will be a flat rate of £140 per year.

If your vehicles list price is over £40,000, there will be an additional annual charge of £310 a year, taking your total annual rate up to £450.


See the examples below:


If you purchased a Jaguar XE in R-Sport specification with the 2.0d (180) Ingenium Diesel engine (Iist price £34,775 and 111g/km CO2), your new first year rate would be £160 and the rate for the following 4 years would be £140 per year – giving you a total VED cost of £720 over a 5 year period.


If you purchased a Range Rover SWB and opted for the Vogue specification with the SDV8 4.4 litre Diesel engine (list price £83,350 and 219g/km CO2), your new first year rate would be £1,200 and the rate for the following 4 years would be £450 per year – giving you a total VED cost of £3,000 over a 5 year period.


After 5 years of ownership, the tax rate will then drop down to the standard annual rate, for instance £140 per year for petrol or diesel vehicles.

These rate changes only apply to new vehicles purchased from the 1st April 2017 onwards and won’t affect any used car purchases, as long as the car was registered before this date.

If you’d like to know more about the VED changes, you can find vehicle tax rate tables on the UK Government website via this link: https://www.gov.uk/vehicle-tax-rate-tables/overview



Should you have any questions regarding a new vehicle purchase with Pentland in advance of the VED changes on April 1st 2017, please contact a member of your local Pentland Land Rover team via the links below, or by calling your local dealership.


Pentland Land Rover Edinburgh

Pentland Land Rover Cupar

Pentland Land Rover Perth

Pentland Land Rover Elgin