Winners and losers in the 2017 car tax shake-up

The cost of motoring will rise steeply for many car buyers from April 2017 as part of a wide-ranging new tax regime. Under the system, road tax (also known as car tax, Vehicle Excise Duty or VED) rates will now be based on vehicle emissions AND list price.

Applying to all new cars registered on or after April 1, 2017, many previously tax exempt cars will now have to pay up. In fact, the only vehicles that will be free to tax will be all-electric cars that cost less than £40,000.

In a nutshell, buyers of economical small cars and hybrids will face the biggest tax hike – in some cases, more than nine times what they’re paying now. However, some sports cars and SUVs that cost less than £40k and have emissions of 226g/km and above, will actually work out cheaper under the new regime over the years.

Read on for some real world examples of how the new VED bands will affect various cars over a three-year period…