Car tax prices set to increase for anyone who bought a car from 2017

Cars registered from April 2017 will see their annual road tax increase.

Motorists driving older vehicle models are set to see an increase in their Vehicle Excise Duty also known as road tax from April 1. Cars registered from April 2017 will see their annual road tax increase. What you pay for road tax depends on the type of fuel it uses, when it was registered and how much CO2 is produced.

The government website says that the current VED structure based on CO2 bands was introduced in 2001 when average UK new car emissions were 178 gCO2/km but now say that the new VED system retains and strengthens the CO2-based FYRs to incentivise uptake of the very cleanest cars while moving to a flat SR in order to make the tax fairer, simpler and sustainable.

The Express reports: “Nearly every petrol, diesel, and electric vehicle owner will face higher bills from April when updated Vehicle Excise Duty (VED) rates take effect. According to the regulations, older road users must pay the same charges as all other drivers across the UK, with no age-related concessions available.”

Those most likely affected are those who registered a car from April 1, 2017 who will see their car tax rise from £195 to £200. The gov.uk website says: “This measure reforms Vehicle Excise Duty (VED) for cars first registered from 1 April 2017 onwards. First Year Rates of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle.

“A flat Standard Rate of £140 will apply in all subsequent years, except for zero-emission cars for which the SR will be £0. Cars with a list price above £40,000 will attract a supplement of £310 on their SR for the first five years in which a SR is paid. All cars first registered before April 1, 2017 will remain in the current VED system, which will not change.”

Drivers who will face the biggest impact are those who purchase new petrol and diesel cars with VED charges rising by £200 going from £5,490 to £5,690.

If you buy a new car, you pay what is known as the showroom tax for your first year. If the vehicle emits between 1-50g/km of CO2, the first-year car tax rate after April 2026 will rise from £110 to £115. These rates only apply for the first year you own the car. From the second year onward, you pay the standard car tax rate, which is rising from £195 to £200. Reports Birmingham Live.

New first year car tax rates from April 1

• 0g/km – £10 (no change)

• 1-50g/km – £115

• 51-75g/km – £135

• 76-90g/km – £280

• 91-100g/km – £365

• 101-110g/km – £405

• 111-130g/km – £455

• 131-150g/km – £560

• 151-170g/km – £1,410

• 171-190g/km – £2,270

• 191-225g/km – £3,420

• 226-255g/km – £4,850

• 255+g/km – £5,690

For cars registered before 2017 the rates are different as they are split into different CO2 bands where vehicle tax will be lower if the emissions also are.

Car tax from April 2026 for cars registered between March 1, 2001 and March 31, 2017

• Up to 100g/km – £20 (no change)

• 101-110g/km – £20 (no change)

• 111-120g/km – £35 (no change)

• 121-130g/km – £170

• 131-140g/km – £200

• 141-150g/km – £225

• 151-165g/km – £275

• 166-175g/km – £325

• 176-185g/km – £360

• 186-200g/km – £410

• 201-225g/km – £445

• 226-255g/km – £760

• 255+g/km – £790