UK Road Tax Changes – know the law

From April 2017, UK road tax charges are changing. This new vehicle taxation system introduces a standard rate of £140 per year for all petrol and diesel driven powered vehicles.

Many of Citroen’s current range fall into a low tax bracket with annual road charges often being free thanks to their low CO2 emissions. Citroen has strived to produce vehicles that are environmentally conscious and economically beneficial to their drivers. In April 2017 these same vehicles will increase in running costs.

If I buy a car now, will the road tax change in April 2017?

This new UK road tax legislation will come into force in April 2017 for new vehicles purchase after this date. Every car sold before this time is still eligible for the current tax bracket. Therefore, any Citroen sold before April 2017 with under 100 g/km of CO2 will always have free road tax. Every Citroen sold before April 2017 with under 120g/km will always pay £20 per year.

So I’ll save on road tax if I buy now?

Yes. With many of our Citroens (excluding those producing over 140g/km of CO2) it means you’ll save year after year. The table below represents the current taxation rate for all vehicles registered up to and including 31st March 2017.

What about First Year Rate changes?

First year rate of taxation is not so transparent as these are effected by carbon emissions levels. The table below represents all of the prices coming into force in April 2017.

If your vehicle purchase is above £40,000 then you will have to pay a £310 annual supplement for five years.

What advice would Charters offer the potential car buyer?

Naturally, the obvious choice would be (if you’re looking to buy a car in 2017) buy it earlier in the year when you are not bound by the new taxation rules. Especially if it is a vehicle with low CO2 levels such as the C1, New C3 or DS3. However, when the legislation comes in there’s no need to be alarmed. In fact for family drivers looking to buy a more powerful engine, road taxation will not cost you any sort of premium. These new prices are likely to offer a levelling effect where drivers of small, city cars pay the same as large spacious cars. Charters expect that customer’s buying habits will change accordingly with many local drivers opting for a larger vehicle with no compromises.

What vehicles does Charters Citroen sell, that are eligible for £0 road tax in April 2017?

Here’s the horrible truth: none. Despite advances in the award winning PureTech petrol engine and BlueHDi diesel range, there is not a single petrol or diesel driven engine on the planet that can achieve the necessary 0 g/km of CO2 to be eligible for £0 annual road tax. This taxation bracket was designed for only two types of vehicles: Electric and Hydrogen powered. Both of these types of vehicles are expensive to purchase new which negates the reason for buying one for cheaper road tax.

Whilst Citroen do produce Electric vehicles (such as the Partner Electric van, C-Zero and E-Mehari) Charters do not regularly sell them – they are sold in other European territories. Citroen currently has no hydrogen-powered vehicles in production.

Simply put, if you’re looking to buy a new car which has zero road tax and is exempt from London Congestion charging, then talk to us before the end of March 2017.