New VED rates for new cars
The current road tax regime is costing the Exchequer a packet as carmakers have slashed the CO2 emissions of their cars to take advantage of the generous VED tax bands for new lower-emissions vehicles.

New cars registered after April 1st 2017 will pay a one-off tax charge for the first year, with rates decided by a heavily revised version of the current CO2-based tax band system. The adjustments mean most buyers will see their first year tax charge virtually doubled, while only zero-emissions vehicles will get away with paying nothing at all.
From the second year onwards, the CO2 scale becomes irrelevant, as two flat rates will then be applied – a £0 (zero) VED rate for zero-emissions vehicles only, and a flat annual rate of £140 for all other cars. See the report on the Auto Express website.

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From 1st April 2017 the Vehicle Excise Duty CO2 bands are changing for all new cars. In short, new low emission cars that would previously have been VED exempt will now have a fee for the first five years of ownership. The first year fees are either less or more than the subsequent years depending on the band. The first year fees can be hefty if you buy a less economical car - anything up to a staggering £2,000 (for new cars over 255g CO2/km - see the table alongside). So this is serious stuff for new car buyers. The only new cars exempt from VED under the new scheme are zero emissions cars - totally electric. You can see full information on the VED rates on the DVLA website.

When the delivery waiting time following ordering a new vehicle is considered, there is now only a couple of months left to order before you can no longer get the current VED rate for a new car. The good news is these VED tax changes only apply when buying brand new cars, so used car purchases won't suffer the rate changes.