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Road Tax Changes for 2017

Posted 2016/10/18 by Motoshow Plates

Road Tax Changes for 2017

As you will know if you’re a vehicle owner, there is a fairly long list of legal requirements you need to satisfy before you even think about taking your car out for a drive on any UK road.

One of the main things you need to get in order is, of course, ensuring you have road legal number plates on the front and back of your car. If you order from Motoshow Plates, we can help you make sure your custom number plates made with our online plate maker are designed to follow the legal template, and the finished product you receive will look exactly the same. Regulations about number plates are not expected to change in the near future.



However, one thing that is set to change very soon is how road tax is calculated for the vast majority of UK road users. Currently, the system used for calculating VED (vehicle excise duty) is beneficial to many drivers with low-emission cars, as these cars were exempt from all road tax if CO2 emissions per kilometre were below a certain threshold. Under the new changes, which were originally planned by the previous Chancellor of the Exchequer George Osborne and announced in the 2015 budget, this zero tax rate will be scrapped for all low emission vehicles except those with absolutely zero carbon emissions.

These new changes will be coming into effect from April 2017, so now is the time to start considering the impact. Almost all drivers will be affected, since the new system will introduce a new flat rate of £140 per year regardless of CO2 emissions. This is only payable from the second year onwards, however, since the first year’s worth of road tax on a new car will be calculated based on your exact vehicle’s value.

The new system is designed to be more sustainable for the future, since more vehicles are expected to fall at the lower end of the emissions table in the coming years. It is also intended to put more of the tax burden on higher earners, since they can afford more expensive cars which will now be subject to a higher rate of road tax. However, it remains the be seen what the true effect of the changes will be once they are rolled out next April.

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