Audi Car Tax Changes

Everything you need to know about UK road tax rules and the 2017 car tax changes

UK car tax charges depend on the age and CO2 emissions of your vehicle. There are three tax systems in place, based on the age of the vehicle, with the oldest system related to engine size, and the two most recent systems both charging according to CO2 emissions. We explain the VED (Vehicle Excise Duty) charges for each system, going over the 2017 road tax changes in detail. If there’s anything you don’t understand here, get in touch with our expert team, who will be happy to help.

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Why have the car tax rules changed?

The Audi new car model range is the cleanest it has ever been. Because Audi and other car manufacturers have been so successful at reducing the CO2 emissions, the government has seen a fall in its revenue from road tax. These car tax changes aim to redress this shortfall by increasing the cost, particularly for low-emission cars.

2017 car tax charges in brief

In the first year, all cars are charged depending on CO2 emissions, with a £10 discount given to alternative fuel cars. From the second year onwards, however, almost all cars, irrespective of CO2 emissions, will attract the same annual charge of £140. The only exception is that alternative fuel cars continue to get a £10 discount, and electric cars are tax-exempt. There is also a £310 annual supplementary charge for all cars costing £40,000 or above – with no exceptions.

What are the best cars to buy under the 2017 car tax system?

As mentioned, fully electric cars will attract no road tax charge at all so long as they cost less than £40,000. And it still pays to buy the very cleanest cars due to the CO2-based sliding scale system of the first-year charge. A low-emitting plug-in hybrid, such as an Audi e-tron, 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 a £10 saving for owning an alternative fuel car. The following are classed as alternative fuel cars:

  • Hybrids and plug-in hybrids
  • Biofuel cars (bioethanol or biodiesel)
  • Liquefied petroleum gas (LPG) cars
  • Compressed natural gas (CNG) cars

So, how much does it cost to tax my car registered after 1st April 2017?

First-year road tax charge:

CO2 emissions (g/km) Petrol (TC48) and diesel cars (TC49) Alternative fuel cars (TC59)
0 £0 £0
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
Over 255 £2,000 £1,990

Annual road tax charge in subsequent years:

Electric vehicle Alternative fuel Petrol or diesel
£0 £130 £140

Annual road tax charge for vehicles over £40,000:

For vehicles costing over £40,000 (including the cost of options but before any discounts you receive from us), you pay the standard CO2 emissions-based rate for the first year, but thereafter you will pay an additional yearly rate of £310 on top of the standard amount.

Fuel type Standard annual rate Additional rate  Total annual payment
Electric £0 £310 £310
Alternative £130 £310 £440
Petrol or diesel £140 £310 £450

How do the 2017 car tax changes affect company car users?

If you’re a company car user then it’s good news, because no changes have been made to the current BIK (Benefit-in-kind) car tax system. That means low-emission company cars, such as Audi models featuring Audi ultra technology like the Audi A3 and Audi A4, will still be rewarded with attractive BIK rates. M25 Audi has some exceptional Audi business lease deals available across the Audi range. Contact us to find out more about business lease for any Audi model.

How much does it cost to tax a car made before April 2017?

Here, the rate of vehicle tax is based on fuel type and 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
M Over 255 £535 £505

How much does it cost to tax a car made before March 2001?

The UK road tax system for cars registered before March 2001 is quite different. Here, vehicles are charged based on their engine size: engines smaller than 1,549cc will be charged at £150 a year, and the charge for anything over that will be £245.

What vehicles are road tax-exempt?

  • All vehicles powered purely by electricity
  • Any vehicle registered as being used by a disabled person
  • Historic cars – vehicles 40 years or older work on a rolling basis that commences on 1st April each year

Contact M25 Audi to discuss any Audi model in more detail, or to find out about road tax rates for a specific Audi model. We’d be more than happy to help ensure you spend as little as possible on road tax!

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To find out what the road tax changes mean for any Audi model you’re interested in, please call or send us an enquiry