2017 Car Tax Rules

Everything you need to know about the 2017 road tax changes.

Here are the 2017 car tax rules, in brief...

From April 2017, new petrol and diesel cars are on a rising scale in year one, starting at £10 for 1-50g/km of emissions, rising to £2,000 for emissions over 255g/km. Alternative fuel cars pay no car tax for emissions up to 50g/km, then go onto a rising scale, starting at £15 from 51-75g/km and going up to £1,990 for emissions over 255g/km. Thereafter, electric vehicles are free, alternative fuel cars pay £130 a year and petrol/diesel cars pay £140 a year. Vehicles costing over £40,000 pay an additional £310 every year after year one. Other rules apply to older vehicles. Read on to find out more.

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Why have the car tax rules changed?

It's all due to the way manufacturers like Honda, Kia, Mazda, Mitsubishi, Renault and Dacia have been so successful in reducing vehicle emissions. With more cars than ever from these brands costing very little or nothing at all to tax under the old system, the government had to make some revisions in order to overcome this shortfall. However, that's not to say it necessarily costs more to tax all new cars now, as the government still rewards owners of clean cars under the new system.

How can I save money under the 2017 car tax rules?

The cars that attract no road tax at all are full-electric cars that cost less than £40,000 – cars like the Renault ZOE and Kia Soul EV, for instance. However, there are plenty of other options out there that can save you money during that first year, plus a small amount thereafter. Plug-in hybrids like the Kia Optima PHEV, producing just 37g/km CO2, allow you to pay no tax in the first year, then £130 thereafter; the same goes for the Mitsubishi Outlander PHEV.

Read on to find out exactly how the charges work under the new system, or contact your local Brayleys dealership to have a chat with our helpful and knowledgeable sales team about the road tax costs of a specific model you might be interested in. We'd be more than happy to help ensure you don't spend a penny more than you have to on road tax!


How do the new car tax rules work?

First-year road tax charge:

CO2 emissions (g/km) Petrol (TC48) and diesel cars (TC49) Alternative fuel cars (TC59)
0 £0 £0
1 - 50 £10 £0
51 75 £25 £15
76 - 90 £100 £90
91 - 100 £120 £110
101 - 110 £140 £130
111 - 130 £160 £150
131 - 150 £200 £190
151 - 170 £500 £490
171 - 190 £800 £790
191 - 225 £1,200 £1,190
226 - 255 £1,700 £1,690
Over 255 £2,000 £1,990

Annual road tax charge in subsequent years:

Electric vehicle Alternative fuel Petrol or diesel
£0 £130 £140

Annual road tax charge for vehicles over £40,000:

For vehicles costing over £40,000 (to include any options you may wish to add and before any discount we provide), you pay the standard CO2 emissions-based rate for the first year but thereafter pay an additional yearly rate of £310 on top of the standard rate.

Fuel type Standard annual rate Additional rate Total annual payment
Electric £0 £310 £310
Alternative £130 £310 £440
Petrol or diesel £140 £310 £450

How do the 2017 car tax changes affect company car users?

If you're a company car user then you don't need to worry – there's no change to the BIK (benefit-in-kind) car tax rates currently in place. That means low-emission company cars will still be rewarded with better BIK rates. Brayleys has some outstanding business offers available across all its brands, so we're sure to have the perfect business deal to suit you. Take a look at our latest business offers, or contact us to find out more.

How much does it cost to tax a car made before April 2017?

Only fuel type and CO2 emissions are used in the pre-2017 road tax system.

Petrol and diesel cars:

Band CO2 Emissions Cost
A Up to 100 £0
B 101 to 110 £20
C 111 to 120 £30
D 121 to 130 £115
E 131 to 140 £135
F 141 to 150 £150
G 151 to 165 £190
H 166 to 175 £220
I 176 to 185 £240
J 186 to 200 £280
K 201 to 225 £305
L 226 to 255 £520
M Over 255 £535

Alternative fuel cars:

Band CO2 Emissions Cost
A Up to 100 £0
B 101 to 110 £10
C 111 to 120 £20
D 121 to 130 £105
E 131 to 140 £125
F 141 to 150 £140
G 151 to 165 £180
H 166 to 175 £210
I 176 to 185 £230
J 186 to 200 £270
K 201 to 225 £295
L 226 to 255 £490
M Over 255 £505

How much does it cost to tax a car made before March 2001?

Engine size is the only factor in determining how much you'll pay for road tax if your car was made before March 2001. It's simple: engines smaller than 1,549cc attract a £150 annual charge and anything over that will be charged at £245.

What vehicles are road tax exempt?

  • Vehicles powered by electricity only
  • Vehicles registered as being used by a disabled person
  • Vehicles that are 40 years or older, working on a rolling basis that starts on 1st April each year

Contact our experts if there's anything else you want to know about road tax or how it relates to the model you're interested in. We'd be more than happy to help ensure you spend as little as possible on road tax!

Find your new car now:

Browse over 60 deals across the Brayleys brands and find a finance offer that makes affording your new car simple. Find your next car now and you could save on road tax before the big changes arrive on 1st April 2017.

  • Honda Offers

    Save on car tax increases, order your new Honda today

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  • Kia Offers

    Explore our vast range of Kia finance deals across all models

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  • Mazda Offers

    Many finance options are available across the range

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  • Renault Offers

    See our Renault offers with various payment options

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  • Dacia Offers

    Affordable finance offers available on all Dacia models

    Dacia Offers in BuckinghamshireView Details
  • Mitsubishi 

    Great value Mitsubishi offers available across the range

    Mitsubishi Offers in OxfordshireView Details

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To find out what the road tax changes mean for any models you're interested in, please call or send us an enquiry

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