New car tax is here: NFDA comments

“New vehicle tax rates come into force today, 1 April 2017. New vehicles registered with the DVLA from now on, will incur new, and, in many cases, more expensive rates. It is imperative that dealers are fully aware of the changes and able to explain them correctly to their customers”, said Sue Robinson, Director of the National Franchised Dealers Association (NFDA) which represents franchised car and commercial vehicle retailers across the UK.

New vehicles registered with the Driver and Vehicle Licensing Agency (DVLA) from today, 1 April 2017, will pay new first year licence rates which will still be based on carbon dioxide (CO2) emissions bands, but with revised ranges.

For subsequent years, and also if the registered keeper changes, a flat Standard Rate (SR) of £140 will apply. In addition to the standard rate, all vehicles with a list price over £40,000 will also attract an annual supplement of £310 for the first five years. Zero-emissions vehicles, not including hybrid, will not incur either the first year or standard rate.

Robinson continued, “This is a complex reform and the NFDA has been in constant dialogue with the DVLA to ensure that the changes were communicated as accurately as possible.

“Tax rates will become more expensive for several vehicles, especially hybrid and small petrol cars, and it is vital that customers understand well the changes to avoid further confusion or possible discontent following the purchase of a new car.

“We continue to urge dealers to consult our guidance documents and contact us or the DVLA if they need any clarifications.”