What cars will be exempt from 2017? | comparethemarket.com

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What cars will be car tax exempt from 2017?

The Chancellor, George Osbourne announced significant changes to the car tax regime in his summer budget of 2015. These will have significant implications, particularly at the cheaper, more fuel efficient end of the spectrum.

What cars are already exempt?

Currently the following new cars have some form of tax exemption:

- Band A up to 100g/km of CO2 are exempt completely
- Band B, between 101 and 110g/km are exempt in year 1 and £20 thereafter
- Band C, between 111 and 120g/km are exempt in year 1 and £30 thereafter
- Band D, between 121 and 130g/km are exempt in year 1 and £110 thereafter

Band A cars would include models of the Suzuki Celerio, the Citroen C1, Toyota Aygo, Skoda Citago and VW up! Band D includes some models of Ford Fiesta, Fiat Punto, Renault Clio and Kia Picanto.

What's changed?

From April 2017, things will change. The government have done away with the lettered bandings, perhaps, some might argue to make it harder to compare the increases. Instead car bands will be listed by emission band.

The only cars exempt at all will be cars with zero emissions.

For the former cars that were previously exempt, we can tell you that they will, from April cost the following:

- Band A between £20 and £120 in year 1 and £140 thereafter
- Band B, £140 in year 1 and £140 thereafter
- Band C and D, £160 in year 1 and £140 thereafter

Remember, these changes only apply to the purchase of new cars, so existing cars will continue to be based on engine size for those registered before 2001 and on the existing classifications for those registered before April 2017.

If you’re looking to buy a new car at the moment, and the car would fall in to the existing A to D bandings you may want to consider the timing. Purchasing before the end of March next year will secure the lower tax status of your vehicle, whereas after April 1st, the same model will cost you more to drive. 

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