New tax rates based on a vehicle’s CO2 emissions the first time it is registered have come into effect.
It applies to all cars and some motor homes registered from 1st April 2017.
The standard rates are:
There is an additional payment of £310 per year for five years, from the second time the vehicle is taxed, if the vehicle has a list price of more than £40,000 at first registration.
After the five years, the vehicle will then be taxed at one of the standard rates – £140, £130 or £0 depending on vehicle type.
The changes do not affect cars registered before 1st April 2017 – but their rate of tax has increased today in line with the Retail Price Index.
The government recently announced plans for the first phase of a £100 million investment in connected and autonomous vehicle (CAV) testing infrastructure and £23 million to boost the uptake of hydrogen vehicles and roll out more infrastructure.