In 2015 the Government announced that Vehicle Excise Duty (VED) would change from the 1st April 2017 on all new registrations. But, what does this mean to you? Below we are pleased to provide some information in relation to this change, but the important point to highlight is that if you buy a car before 1st April 2017 you will avoid the new tax increase and save money.
The way Vehicle Excise Duty is calculated is changing for vehicles registered from 1 April 2017. All vehicles registered before this date will not be affected.
If you are currently considering a brand-new vehicle and it is registered on or after 1 April 2017, after the first licence the majority of vehicles move to the standard rate of vehicle tax which is £140 a year.
If the vehicle price was over £40,000 at first registration, the customer will pay £450 a year, after the first vehicle license. This is made up of the £140 standard rate and £310 additional rate.
After 5 years, the vehicle tax will revert to the standard rate of £140 per year.
The team at John Clark MINI is here to help, and if you would like further information on a purchase you are considering, please don't hesitate to get in touch. Similarly, if you would like to find out more about what you can save by registering a vehicle ahead of the change, feel free to get in touch.