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VED Changes

ORDER AND REGISTER YOUR NEW BMW BEFORE 1ST APRIL TO AVOID PAYING MORE VEHICLE EXCISE DUTY (VED).*

From 1st April 2017, the UK car tax system will undergo major changes.

We have put together this page to help explain these changes and illustrate how purchasing and registering your new BMW before 1st April could offer you significant savings over the next 6 years.

THE MAIN CHANGES IN VED TO NOTE ARE:

  • The First Year Rates (FYRs) of VED will vary according to the CO2 emissions of the vehicle; this is on a sliding scale from £0 for zero emission cars up to £2,000 for vehicles with emissions over 255g/km of CO2
  • A subsequent flat standard rate of £140 per year will apply to all cars (except for zero emission cars for which the standard rate will be £0)
  • Cars with a list price of over £40,000 will pay an additional premium supplement of £310 per year on the standard rate for the first 5 years in which a standard rate is paid
  • Cars first registered before 1 April 2017 will continue to pay under the current VED system, which will not change

EXAMPLES OF CHANGES IN VED RATES ON A SELECTION OF NEW BMW MODELS:

Model Example: BMW 116d ED Plus Sports Hatch
On the road cash price: £21,685
CO2 emissions (g/km): 94

VED Calculation

Before 1st April 2017 (current VED system)1st April 2017 onwards (new VED system)
First year rate £0 £120
Standard year rate £0 / year £140 / year
Premium supplement payment (each year for 5 years) N/A £0 / year
Six year tax cost £0 £820

Total Tax Increase: £820



Model Example: BMW 320d M Sport Saloon Auto
On the road cash price: £34,460
CO2 emissions (g/km): 116

VED Calculation

Before 1st April 2017 (current VED system)1st April 2017 onwards (new VED system)
First year rate
£0 £120
Standard year rate £30 / year £140 / year
Premium supplement payment (each year for 5 years) N/A £0 / year
Six year tax cost £180 £820

Total Tax Increase: £640



Model Example: BMW 335d xDrive M Sport Touring
On the road cash price: £44,775
CO2 emissions (g/km): 151

VED CalculationBefore 1st April 2017 (current VED system)1st April 2017 onwards (new VED system)
First year rate £185 £500
Standard year rate £185 £140 / year
Premium supplement payment (each year for 5 years) N/A £310 / year
Six year tax cost £1,110 £2,750

Total Tax Increase: £1,640



Model Example: BMW X5 xDrive 30d M Sport Auto
On the road cash price: £54,265
CO2 emissions (g/km): 158

VED CalculationBefore 1st April 2017 (current VED system)1st April 2017 onwards (new VED system)
First year rate £185 £500
Standard year rate £185 £140 / year
Premium supplement payment (each year for 5 years) N/A £310 / year
Six year tax cost £1,110 £2,750

Total Tax Increase: £1,640



GENERAL DESCRIPTION OF THE MEASURE

This measure reforms Vehicle Excise Duty (VED) for cars first registered from 1 April 2017 onwards. First Year Rates (FYRs) of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle. A flat Standard Rate (SR) of £140 will apply in all subsequent years, except for zero-emission cars for which the SR will be £0. Cars with a list price above £40,000 will attract a supplement of £310 on their SR for the first 5 years in which a SR is paid. All cars first registered before 1 April 2017 will remain in the current VED system, which will not change. The new rates and bands for the post-2017 VED system are set out in the table below:

New VED system - for cars registered from 1st April 2017

Emissions (g/CO2/km)First year rateStandard rate
0 £0 £0
1-50 £10 £140
51-75 £25 £140
76-90 £100 £140
91-100 £120 £140
101-110 £140 £140
111-130 £160 £140
131-150 £200 £140
151-170 £500 £140
171-190 £800 £140
191-225 £1200 £140
226-255 £1700 £140
over 255 £2000 £140


BMW BATH - 01225 562 706

BMW BRISTOL - 0117 321 6722

BMW HUNGERFORD - 01488 853 606  ​

BMW SWINDON - 01793 393 754

*Vehicle must be ordered and registered before 1st April 2017 to benefit from current VED system.