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Sep 29

Changes to the Car Tax Band Scheme

Posted by:AutoMoney

DVLA ReminderIt seems that the incentive to buy low emissions cars has not worked quite as the government would have liked, with 59% of AA members saying they would not be interested in purchasing a ‘green’ car in a recent survey.
 
The new Vehicle Excise Duty Bands (VED) which are due to come into force in April 2017 have so far have not created shockwaves like expected.
 
Drivers believe that if they were to fork out for a zero emissions or Band A car come April 2017, there would be so few of them on the road, that the initial outlay wouldn’t be worth it and instead, they would be better off paying the standard £140 a year car tax rate.
 
Currently, there are 13 bands that are based on CO2 emissions that make up the car tax rate, as explained below: (these rates are for 2015/16)

Band A - £0 Band F - £145 Band K - £290
Band B - £20 Band G - £180 Band L - £490
Band C - £30 Band H - £205 Band M - £505
Band D - £110 Band I - £225
Band E - £130 Band J - £265

However, in 2017 this is changing to be just two bands, one for zero emissions and one for all other cars, capping the rate at £140 – this is only applicable for cars that are registered after April 2017.

Although it still remains to be seen, at the moment the indication is that drivers are more inclined to pay the tax band charges rather than fork out for a new car! 

Image credit: https://farm3.staticflickr.com/2613/3701849492_946bacd0b5_o_d.jpg

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