From 1st April 2017, new vehicle tax rates were introduced. Vehicle tax for the first year will be based on CO2 emissions. Thereafter, the amount of tax payable will depend on the type of vehicle. The rates are currently set at:
- £140 a year for petrol or diesel vehicles
- £130 a year for alternative fuel vehicles
- £0 a year for vehicles with zero CO2 emissions.
New vehicles with a list price of over £40,000 will have a tax rate that is based off of the CO2 emissions in the first year. Thereafter, the rate will depend on the type of vehicle (petrol, diesel, alternative fuel or zero emissions) and an additional rate of £310 a year for the next 5 years.
After 5 years, the vehicle will be tax depending on the vehicle type.