DVLA Implements New Car Tax Rules from April 2017

The world is fighting a tough battle against the rapidly growing air pollution in its different parts. In support of this initiative, the U.K’s Driving and Vehicle Licensing Agency (DVLA) has taken a few more steps that can help curtail the issue. The agency has now decided to implement certain necessary changes in its vehicle taxation policy. This has been done in order to curb the issue of air pollution as well as not being a burden on the common masses. If you would like to know more about the licensing agency and its new rules, contact the DVLA telephone number 0870 025 0121.

Effective in different parts of the country from April 1st, the new car tax rules will significantly increase the amount buyers have to pay on certain models due to a change in emissions bands for new cars. However, the new rule will not be applicable on the new cars that are already registered. The change was introduced by the former chancellor George Osborne to prove to the world that the majority of new cars have such low emissions, which, in turn, exempts them from paying any tax.

Some important changes

The new rule implemented by the government will not impact the vehicles registered before 1st April, 2017, but will have the following impacts:

  • For the cars registered after April 1st, 2017,the owners will be required to pay a one-off tax charge for the first year. This amount will vary on the basis of the CO2 emissions of the vehicle, which is measured in g/km.
  • A flat rate of £140 will be applicable on all the vehicles from the second year onwards. Only the vehicles that have zero emissions, such as electric, will be exempted from the same.
  • The new policy will have a major impact on the one-off first year payment for higher emission vehicles,as it will make it jump dramatically. However, the standard rate will fall beyond the first year in some models.
  • Cars that cost more than £40,000 will be required to pay an annual supplement of £310 between years two and six.

Computing vehicle tax

The vehicle tax applicable on different vehicles for the first year is based on their CO2 emissions. But, from the second year, thus rate will depend on the type of vehicle, such as:

  • £140 a year for petrol or diesel vehicles
  • £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
  • £0 a year for vehicles with zero CO2 emissions
  • New vehicles with a list price of more than £40,000
  • If a vehicle has a list price (the published price before any discounts) of more than £40,000, the rate of tax is based on CO2 for the first year.

Along with this, an additional rate of £310 a year will also be applicable for the next 5 years. Post these five years, the tax will be calculated at one of the standard rates (£140, £130, or £0, depending on vehicle type). 

If you would like to know any other details about the vehicle tax in the U.K., contact the representatives available at the DVLA customer care number.

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