Will I pay £140 per year in tax from April 2017 onwards?

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Will I pay £140 per year in tax from April 2017 onwards?

My old Honda CR-V is due a new road fund licence at the end of the month and will cost £265 for 12 months. However, the rate changes on 1 April 2017 to a cost of £140 for 12 months. Can I pay monthly for a few months and then pay £140 in April for a full year to April 2018? Alternatively am I able to buy a 6 month licence and renew under the new rules in July, or am I stuck with a full £265 for 12 months?

Asked on 10 January 2017 by Matthew Pewsey

Answered by Honest John

The rate change in April is only for new cars first registered from April 2017. After the CO2 based first year VED, it will be £140pa from April 2018, plus £310pa a year for cars originally costing more than £40,000. Older cars stay in the same CO2 based VED bands but there has not yet been an announcement of the raised rates.

More detailed explanation here: www.honestjohn.co.uk/road-tax/budget-2015-new-ved-.../

Tags: car tax co2 emissions owning ved consumer advice 2017 ved tax changes

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