7
Spring Budget 2017
Plug-in grants
Motorists (private or business) purchasing new qualifying ultra-low emission cars can receive a grant of 35% towards the cost of the vehicle, up to a maximum of either £2,500 or £4,500 depending on the model. The scheme also covers new qualifying ultra-low emission vans, where the available grant will be 20% towards the cost of the vehicle, up to a maximum of £8,000. Vehicles with CO 2 emissions of 75 g/km or less, including electric, plug-in hybrid and hydrogen-fuelled cars, are potentially eligible for the subsidy. There are strict criteria to be met before specific vehicles can be confirmed as eligible under the rules of the scheme.
Vehicle Excise Duty (VED) rates VED bands and rates for cars first registered on or after 1 April 2017 A new VED system will apply to the taxation of most passenger vehicles registered on or after 1 April 2017. For the first year this is based on CO 2 emissions as set out in the table on the right. For following years all vehicles with zero emissions will be exempt from the standard rate of vehicle tax, all other petrol or diesel vehicles will pay a standard rate of £140 a year. An additional rate will be added to the vehicle tax for all new vehicles with a list price of over £40,000 (including zero emission vehicles). This additional rate of £310 will be payable each year for five years from the end of the first vehicle licence. After the five year period the standard rate will apply. Alternative fuel vehicles continue to receive a £10 reduction on the standard and first year rates.
CO ² emissions (g/km)
First year rate
0
£0
1 - 50
£10 £25
51 - 75 76 - 90 91 - 100 101 - 110 111 - 130 131 - 150 151 - 170 171 - 190 191 - 225 226 - 255 Over 255
£100 £120 £140 £160 £200 £500 £800
£1,200 £1,700 £2,000
Standard rates which apply from 1 April 2017 for cars registered from 1 March 2001 to 31 March 2017
CO
emissions (g/km)
2
Standard rate*
VED Band
A B C D E F G H
Up to 100 101-110 111-120 121-130 131-140 141-150 151-165 166-175 176-185 186-200 201-225 226-255 Over 255
£0
£20 £30
HGV VED rates
The government announced that it will freeze rates of VED for HGVs in 2017/18, which includes all rates linked to the basic goods rate.
£115 £135 £150 £190 £220 £240 £280 £305 £520 £535
I
J
K**
L
M
*Standard rate is reduced by £10 for alternative fuel vehicles with CO 2 **Includes cars emitting over 225 g/km that were registered before 23 March 2006.
emissions above 100 g/km.
FOR ELECTRONIC USE ONLY
Made with FlippingBook HTML5