In the Summer Budget 2015, the government announced a new measure for vehicle taxation, coming into effect from 1st April 2017.
As of Tuesday 10th January, all Ogilvie Fleet vehicle quotations will reflect the updated Vehicle Excise Duty figures. For vehicles available for delivery prior to 1st April, we will of course be happy to requote based on the current VED figures.
A full breakdown of the VED 2017 tables can be found in the Ogilvie Fleet taxation pages.
The system will still use the vehicles CO2 emissions to determine the tax payable, but also takes into account the value of the car. The vehicles emissions will determine the first year rate, up to £2,000 for the gas-guzzlers, with a standard rate of £140 payable from the second year.
Vehicles with a list price over £40,000 will also pay a £310 supplement until year 5. The list price will include all extras, so a minor upgrade that takes the driver over the threshold could end up costing £1,240 over 5 years.
The current system favours zero- or low-emission vehicles, with minimal tax payable for vehicles emitting up to 120g/km CO2. Under the new system, Zero emissions vehicles under £40,000 will still be excise-free, while those with emissions up to 110g/km paying between £10-140.
The current system was designed to increase the use of low emission vehicles, something which has happened sooner than anticipated, with an estimated 25% of new car registrations paying zero tax.
Around 60% of new vehicles will see an increase under the new system over a three year ownership period. A VW Passat 1.6 TDI S, Lexus IS 300h Hybrid Auto Luxury or Ford C-Max 1.5 TDCi Zetec, all free in the first year and £20 thereafter, will see a 950% increase to £420 over three years.
Some of the vehicles that will see the lowest increase include the Jaguar XE 2.0i R-Sport (auto), Toyota Verso 1.6 V-Matic Icon or Honda CR-V 2.0 i-VTEC SE 4WD, all with an increase of less than 50%.
For more information on these changes read the policy paper on the gov.uk website.