VED, also known as road tax, is due to be reformed on 1 April 2017. The changes, announced in the 2015 summer budget, will mean those with more expensive vehicles will pay significantly more tax
Bowker BWM got in touch with 4 local accountants to get their view on how the changes will affect our customers.
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VED will still be based on the car’s CO2 emissions for the first year, but after that it will be grouped into three bands: zero, standard and premium.
Zero – Zero-emission vehicles under £40,000 will be exempt from all charges
Standard – Vehicles up to £40,000, with CO2 emissions from 1g/km upwards, will incur a VED rate of £140 from year two
Premium – Vehicles with a list price over £40,000, even those with zero emissions, will incur a VED rate of £450 from year two
The First Year Rates (FYRs) of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle (detailed below). A flat standard rate (SR) of VED of £140 will apply in all subsequent years, except for zero emission cars for which the SR will be £0. In addition, any cars reaching their second licensing period – including zero emission vehicles – with a list price (including options) of over £40,000 will incur an additional, supplementary charge of £310 per annum for the next five years. This means that vehicles registered after 1 April 2017 that fall into a list price category of over £40,000, will pay the £140 standard rate plus an additional rate of £310, reaching a total of £450 for the next five years.
These changes will particularly affect owners of premium cars with low emissions, including many BMW models.
If you are considering purchasing one of our cars, there is now good reason to act sooner rather than later, even though low running costs will always make BMW an economical choice.
To discuss the changes, and for a full list of our stock that is available for delivery before April 1st 2017, please call Bowker Preston BMW on 01772 766070 or Bowker Blackburn BMW on 01254 274444.