Car Tax 2017 rates added to Car Tax Calculator

Next Green Car has updated its Car Tax Calculator to include the new VED system set to come into force on the 1st April 2017. The new calculator allows users to both check new car tax costs and those of used cars which come under previous VED rules.

Full details of the new Vehicle Excise Duty (VED) system can be found on NGC's Car Tax microsite - which has been completely updated to reflect the changes. Essentially though, going forward only those vehicles with zero CO2 emissions will pay no road tax.

Buyers of new plug-in hybrid cars will be some of those affected most, since all other models will pay a flat rate no matter what emissions they put out. The only exceptions are a Premium rate to be applied for all vehicles that cost £40,000 or more - zero-emission or not - and a £10 alternative fuel discount, applicable to PHEVs among other car types. Previously, any car with CO2 emissions under 100 g/km CO2 was zero VED rated.

Users of the Car Tax Calculator can select any vehicle on the NGC database, picking the make, model, engine, and trim level. There is now an option available to show the tax costs from 1st April 2017.

When this is selected, the First Year Rate (FYR) displayed will be for new cars registered from April 2017. This will have a greater range of costs than the current system. Drivers will be charged from £0 to £2,000 for a car's FYR depending on CO2 emissions, with the most polluting vehicles now paying almost twice the FYR as under the previous tax model. It's worth remembering though that a new car's OTR (On-The-Road) figure includes it's first year tax costs.

Following on from that will be the normal tax rate, to be paid from Year 2 onwards. This will either display the Standard Rate - should the cost of the car including options not be £40,000 or more - or the Premium Rate - for vehicles that cost £40,000+. The Premium rate is payable for Years 2 to 6 of the car's life, before then reverting back to the Standard Rate.

Any car that costs between £30,000 and £40,000 will have an additional drop-down box appear on the menu, for the user to select whether the car will cost more or less than the £40,000 threshold for the Premium Rate. If a car's base price is £38,000 for example, a user can select that it will eventually cost more than £40,000 when all options are taken into account, or that it definitely won't.

The only other variable is the £10 Alternative Fuel Discount. This is a rule that is carried forward from the previous VED regulations, with the car tax figures displayed taking this into account should the car be a PHEV, conventional hybrid, Hydrogen Fuel Cell vehicle, or any other type of car without a purely petrol or diesel powertrain.

Other updated areas of the site include the Search by Tax Band, and the Search by Make/Model pages, both of which will display the new April 2017 car tax costs for vehicles selected. The Tax Bands page has also had the new VED rules incorporated, for anyone wanting a fuller explanation of the changes.

Click here to use the updated Car Tax Calculator

Chris Lilly

Author:Chris Lilly
Date Updated:31st Mar 2017

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