Vehicle tax for cars registered from 1 April 2017
The way vehicle tax is calculated is different for cars that were first registered with DVLA from 1 April 2017.
When your car is first registered, you’ll also pay the tax (Vehicle Excise Duty) which covers the vehicle for the first 12 months. This first year of tax will depend on the carbon dioxide (CO2) emissions of the vehicle.
From the second time the vehicle is taxed you’ll pay a standard rate, unless you own a zero emission car for which you will pay £0. The standard rate depends on whether your vehicle uses petrol, diesel, or alternative fuel.
Find out more about vehicle tax rates for cars registered from 1 April 2017.
Vehicles registered before 1 April 2017 will continue to be based on fuel type and CO2 emissions, which will not change. You can check the vehicle tax rates for cars registered before 1 April 2017 to make sure you know what you need to pay.
If your car has a list price of more than £40,000
If your vehicle has a list price of over £40,000 before any discounts when it is first registered, the first year of tax will depend on carbon dioxide (CO2) emissions of the vehicle.
From the second time the vehicle is taxed you’ll pay a flat standard rate, and you’ll also need to pay the additional rate.
You need to pay the additional rate for 5 years.
For example, if your car was first registered on 1 April 2017 and is not sold or declared off-road (SORN) within the first 12 months, you would pay the additional rate from 1 April 2018 until 1 April 2023. After this date, you would pay the standard rate.
You can check online to see if you need to pay the additional rate or look in your vehicle log book (V5C). You can also check the list price with your dealer so you know how much vehicle tax you’ll have to pay.
You do not have to pay the additional rate if you have a zero-emission vehicle.
After 5 years of paying the additional rate
You will no longer pay the additional rate. Your vehicle will be taxed at one of the standard rates depending if it uses petrol, diesel, or alternative fuel.
If the date your tax is due for renewal is not the same as the date the additional rate ends, the vehicle tax payment will be adjusted to take this into account.
If you make a single payment then this will be calculated for you and the remaining additional rate will be included.
If you pay by monthly Direct Debit, the values will be adjusted so that the additional rate is paid in the remaining months. For example, if you have 3 months left to pay the additional rate, the first 3 months of your Direct Debit payments will be weighted to include them.