There are three road tax systems in place in the UK, making it difficult to know exactly how much it costs to tax your car. Which system is applicable depends on the age of your car. The oldest system is based on engine size, while the two newer systems are based on CO2 emissions (with other factors to consider). Because VED (Vehicle Excise Duty) charges are not exactly straightforward, we’re going to go over each system and explain the 2017 road tax changes in full. If you have any questions, get in touch with our expert team for more information.
The new BMW car range is exceptionally clean and efficient. Because BMW and other car manufacturers have been so successful at reducing the CO2 emissions of their vehicles, the amount of revenue the government receives from road tax has fallen over recent years. It therefore needs to compensate for this by charging more, and that includes even low-emission cars.
In the first year, cars will be charged according to CO2 emissions, with alternative fuel cars benefiting from a £10 discount across the board. After the first year, all cars will attract the same annual charge of £140, although a £10 discount will still apply to alternative fuel cars, and electric cars are tax-exempt. Cars that cost over £40,000 are taxed an additional £310 a year on top of the standard rate, but only from years two to six.
Full-electric vehicles (those costing less than £40,000, at least) are definitely the ones to go for if you want to avoid road tax altogether. However, because the new VED system works on a sliding scale according to CO2 emissions for the first year, you’ll still benefit from buying hybrids such as BMW iPerformance models. A low-emitting plug-in hybrid costs nothing to tax in the first year, compared to £2,000 for a car emitting over 255g/km CO2. In subsequent years you’ll also enjoy an annual £10 saving for owning an alternative fuel car. The following are classed as alternative fuel cars:
First-year road tax charge:
|CO2 emissions (g/km)||Petrol (TC48) and diesel cars (TC49)||Alternative fuel cars (TC59)|
|1 - 50||£10||£0|
|51 - 75||£25||£15|
|76 - 90||£100||£90|
|91 - 100||£120||£110|
|101 - 110||£140||£130|
|111 - 130||£160||£150|
|131 - 150||£200||£190|
|151 - 170||£500||£490|
|171 - 190||£800||£790|
|191 - 225||£1,200||£1,190|
|226 - 255||£1,700||£1,690|
|Electric vehicle||Alternative fuel||Petrol or diesel|
|Fuel type||Standard annual rate||Additional rate||Total annual payment|
|Petrol or diesel||£140||£310||£450|
Vehicles that cost over £40,000 will be charged an additional rate of £310 every year, from the second to the sixth year (the first-year charges are based on the same CO2 system as above). That £40,000 includes the cost of options but before any discounts you receive.
There are no changes to the current BIK (Benefit-in-kind) car tax system for business users. That means low-emission company cars, such as the BMW 1 Series and BMW 3 Series, will still benefit from attractive BIK rates. With some exceptional BMW business offers available across the BMW range, you can enjoy a highly competitive lease deal and make the most of the current tax rates before they change. Contact us for information on these offers.
If your car was registered before April 2017, you will be charged based purely on the fuel type it uses and its CO2 emissions.
|Band||CO2 Emissions||Petrol & Diesel||Alternative Fuel|
|A||Up to 100||£0||£0|
|B||101 to 110||£20||£10|
|C||111 to 120||£30||£20|
|D||121 to 130||£115||£105|
|E||131 to 140||£135||£125|
|F||141 to 150||£150||£140|
|G||151 to 165||£190||£180|
|H||166 to 175||£220||£210|
|I||176 to 185||£240||£230|
|J||186 to 200||£280||£270|
|K||201 to 225||£305||£295|
|L||226 to 255||£520||£490|
For cars registered before March 2001, road tax charges are based on engine size:
Contact Barons & Chandlers BMW to discuss the road tax charges for the specific BMW model you’re interested in. We’d be more than happy to help.
To find out what the road tax changes mean for specific BMW models, please call or send us an enquiry
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