WARNING - NEW TAX RULES START IN:
Vehicle Excise Duty Increases from 1st April
First year tax ranges from £10 to £2,000
VED for year 2 onwards is £140 for ALL cars
£310 p/a supplement for ALL cars with a list price of £40,000+

EVERYTHING YOU NEED TO KNOW ABOUT THE 2017 ROAD TAX CHANGES

From 1st April 2017, the biggest changes to Vehicle Excise Duty (commonly known as ‘road tax’) for many years will come into effect.

Instead of tax levies being calculated using a vehicle’s CO2 emissions, a flat-rate system will be imposed from year two onwards whereby almost all new car buyers will have to pay an annual sum of at least £140 – and often considerably more. The cost of ownership during year one is also set to soar, with the tax First Year Rate now as much as £2,000.

This will raise the cost of tax drastically for nearly all models, from city car buyers who would previously be exempt to the owners of executive cars and SUVs, who will often see a three- or fourfold increase in the amount they pay every year.


Fewer exemptions for small cars

As of the 1st April only zero-emissions cars, i.e. cars with all-electric or hydrogen propulsion, will be completely exempt from Tax.

Even plug-in hybrids, whose emissions figures are typically assessed as under 50g/km, will be obliged to pay £10 in their first year and £140 thereafter. The numerous owners of superminis with emissions of 99g/km or under will also be obliged to pay £120 in their first year of ownership, before moving to the flat rate of £140 in subsequent years. Most of these cars are currently exempt from tax.

​Heavy initial costs for high-end and high-emissions models

The changes will also affect buyers of more expensive cars. From April, all vehicles with a list price of £40,000 will carry an extra ‘Premium’ annual fee of £310 between years 2-6 of ownership – regardless of emissions.

Although the £140 flat rate after the first year of ownership may be similar or even lower than what the drivers of higher-emissions vehicles pay now, the cost of tax has risen substantially for cars producing over 151g/km. New vehicles with a carbon output of over 255g/km will cost their owners £2,000 during the first year of ownership

Value My Vehicle


How Tax changes could affect you

The vast majority of UK car buyers who purchase a new vehicle after 1st April are therefore set to pay substantially more in tax. The table below shows how the new rates will affect levies on a variety of popular models.



Avoid the new rates

Drivers who purchase and register new cars before 1st April 2017 will be able to do so under the current Tax system – saving themselves hundreds or even thousands of pounds.

At Drift Bridge, we’re currently offering a great selection of savings across the Audi, Mazda, Honda and Volkswagen ranges, making it even more cost-effective to buy a new car before the approaching tax increases.





Audi Current Tax rates

co2*Year 1Year 2Total first 3 years cost
A1117/km £0 £30 £60
A5136/km £130 £130 £390
A8196/km £500 £270 £1,040
Q3146/km £145 £145 £435
Q7153/km £185 £185 £555

Audi Tax rates from the 1st April

co2* Year 1 Year 2 Total first 3 years cost***
A1117/km £160 £140 £440
A5136/km £200 £140 £480
A8196/km £1,200 £140 £1,480
Q3146/km £200 £140 £480
Q7153/km £500 £140 £780

Mazda Current Tax rates

co2*Year 1Year 2Total first 3 years cost
M2117/km£0£30£60
M3135/km£130£130£390
CX3150/km£145£145£435
CX5144/km£145£145£435
M6139/km£130£130£390
MX5​167/km​£300​£210​£720

Mazda Tax rates from the 1st April

co2*Year 1Year 2Total first 3 years cost***
M2117/km £160 £140 £440
M3135/km £200 £140 £480
CX3150/km £200 £140 £480
CX5144/km £200 £140 £480
M6139/km £200 £140 £480
MX5167/km £500 £140 £780

Volkswagen Current Tax rates

co2*Year 1Year 2Total first 3 years cost
up!108/km £0 £20 £40
Polo140/km £130 £130 £390
New Golf180/km £355 £230 £815
Tiguan170/km £300 £210 £720
Passat144/km £145 £145 £435

Volkswagen Tax rates from the 1st April

co2*Year 1Year 2Total first 3 years cost***
up!108/km £140 £140 £420
Polo140/km £200 £140 £480
New Golf180/km £800 £140 £1,080
Tiguan170/km £500 £140 £780
Passat144/km £200 £140 £480

Honda Current Tax Rates vs. Tax Rates from 1st April

co2*Current 1st Year Cost1st April 1st Year Cost***Difference
Honda Jazz 2016 106/km £0 £140 £140
Honda CR-V 2015 115/km £0 £160 £160
Honda HR-V 2016 125/km £0 £160 £160
Honda Civic Hatchback 2015 131/km £130 £200 £70
Honda Civic Tourer 2015 146/km £145 £200 £55

*co2 Listed at the most they could be for each vehicle

Vehicle Excise Duty (VED) is correct at time of publication, but this may alter to reflect any change in the applicable VED rate.

**Vehicles with a list price exceeding £40,000(including factory installation options, delivery charge, number plates and VAT) will pay an additional £310 plus the standard annual rate for a 5 year period. After the 5 year period the standard rate will apply.