New vehicle tax rates have come into force

Under the new rates, all vehicles will continue to be taxed for the first time based on their CO2 emissions.

After this, the amount of tax to pay will depend on the type of vehicle. The new standard rates are:

• £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

There is an additional payment of £310 per year for 5 years (from the second time the vehicle is taxed), if the vehicle has a list price of more than £40,000 at first registration.

More information on the changes is also available.

These changes do not affect cars registered before 1 April 2017 – but their rate of tax has increased today in line with the Retail Price Index.

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