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Increases in road tax for new cars from 1 April 2017

Increases in road tax for new cars from 1 April 2017

Are you thinking of buying a new car, if so then you might want to do this before 1 April 2017.

This is as the rates of RFL are changing significantly for all cars registered after 1 April 2017.

In the first year of ownership you will pay a rate based on a heavily revised version of the existing C02 based banding system. From the second year onwards, C02 emissions become irrelevant and one of two flat rates will be applied, 0% for cars with zero emissions and £140 per year for all other cars.

In addition if your car costs more than £40,000 you will pay an additional surcharge of £310 for each of the first five years, the above flat rates will apply from year six onwards.

The existing C02 based banding system will continue to apply to all cars registered prior to 1 April 2017.

The new rules create winner and losers, if you are considering buying a new car it really does pay to do your calculations and to time your purchase accordingly.

For more information, please contact Lesley Sutton on 01484 550037 or email

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