UK road tax to soar 2500% from April – no joke!

  • Some models will cost 25 times more to tax
  • Super-green hybrids hit but get grants of up to R40 000
  • Six of 10 top-sellers get ‘eye-watering’ tax increases
UK ROAD-TAX SHOCKER. Image: Newspress
UK ROAD-TAX SHOCKER. Image: Newspress

LONDON, England – Imminent changes to Vehicle Excise Duty (VED) mean people in Britain have about a week (from writing on March 28 2017) to secure a deal on a new car before tax rates soar by up to 2475%.

Analysis by What Car? has shown that road- taxing a car bought after April 1 2017 could be as much as 25 times higher – and that includes some of the most environmentally friendly plug-in hybrids.

Conventional hybrids such as the Lexus GS300h and RX450h will be hardest hit after being seen as attractive options for buyers seeking a luxury car with small-car emissions because, under the outgoing legislation, the GS300h and RX450h cost owners as little as £40 (about R640, March 2017) to tax over three years.

Under the new rules that will rise to an astounding £1030 – about R16 480!

R16000 INCREASE OVER THREE YEARS

Under the new legislation only zero-emissions cars costing less than the equivalent of R640 000 will be tax-free after April 1.

In the case of the GS300h hybrid, the near-R16 000 increase in the three-year tax bill is made up of a R2400 first-year rate based on its CO2 emissions, followed by two subsequent payments of the new hybrid flat rate of R2080, which will apply to all vehicles with emissions above 0g/km CO2.

In addition, all vehicles that cost more than R640 000 will be subject to a further R4960 a year charge between years two and six. As a result, three-year tax bills on the Porsche Cayenne E-Hybrid, Mitsubishi Outlander PHEV and Volvo XC90 T8 and Audi Q7 E-tron will also jump from zero to as much as R16 000.

‘THINGS MUCH MORE COMPLICATED’

On the up side, the Audi, Mitsubishi and Volvo remain eligible for a government grant of R40 000 thanks to their low CO2 emissions of less than 75g/km and, if buyers order before the tax increase, they could save almost half as much again.

What Car?’s editor Steve Huntingford said: “The new tax laws are designed to increase the advantage of running a zero-emissions car but they make things much more complicated and push up the price of many ‘bread -and-butter’ models. Fortunately, there are still opportunities to get a great deal.

“Buyers still have a small window to snap up a bargain before April 1 and there are a number of grants for plug-in hybrids at their disposal.”

Top 10 tax increases (multiply x16 for March 2017 currency conversion)

Make/Model Segment Fuel type Cost of tax for three years – 2016/17 Cost of tax for three years – 2017/18 Cost increase over three years Percentage Change over three years
Lexus RC 300h 2.5 F-Sport 2dr CVT Auto Coupe Petrol Hybrid £40 £1,030 £990 2475%
Mercedes-Benz C250d AMG Line Premium 2dr Auto Coupe Diesel £60 £1,060 £1,000 1667%
Mercedes-Benz S300h L AMG Line 4dr Auto Luxury Petrol Hybrid £40 £1,030 £1,000 2475%
Lexus RX 450h 3.5 SE 5dr CVT Auto Large SUV Petrol Hybrid £40 £1,030 £990 2475%
Audi A6 3.0 TDI S Line 4dr S Tronic Executive Diesel £60 £1,060 £1,000 1667%
Mercedes-Benz C250d AMG Line Premium Plus 4dr 9G-Tronic Executive Diesel £60 £1,060 £1,000 1667%
Mercedes-Benz E200d AMG Line Premium 4dr 9G-Tronic Executive Diesel £60 £1,060 £1,000 1667%
Lexus GS300h 2.5 F-Sport 4dr CVT Executive Petrol Hybrid £40 £1,030 £990 2475%
Audi A5 2.0 TDI Sport 2dr S Tronic Convertible Diesel £60 £1,060 £1,000 1667%
Mercedes- Benz C220d AMG Line 2dr Convertible Diesel £60 £1,060 £1,000 1667%

Hybrid tax increases

Make/Model Segment Fuel type Cost of tax for three years – 2016/17 Cost of tax for three years – 2017/18 Cost increase over three years Percentage Change over three years**
Lexus RX 450h 3.5 SE 5dr CVT Auto Large SUV Petrol Hybrid £40 £1,030 £990 2475%
BMW X5 xDrive40e SE 5dr Auto Large SUV Petrol Hybrid £0 £970 £970 N/A
Porsche Cayenne S E-Hybrid 5dr Tiptronic S Large SUV Petrol Hybrid £0 £895 £895 N/A
Audi Q7 3.0 TDI Quattro e-tron 5dr Tip Auto Large SUV Diesel

Hybrid

£0 £880 £880 N/A
Mitsubishi Outlander 2.0 PHEV 4hs 5dr Auto Large SUV Petrol Hybrid £0 £880 £880 N/A
Volvo XC90 2.0 T8 Hybrid Inscription 5dr Geartronic Large SUV Petrol Hybrid £0 £880 £880 N/A

UK top sellers

Make/Model Type Model’s overall UK sales chart position* Fuel Cost of tax for three years – 2016/17 Cost of tax for three years – 2017/18 Cost increase over three years % Change over three years**
Vauxhall Astra Astra 1.0T 12V ecoFLEX Design 5dr Easytronic Hatchback 3 Petrol £0 £400 £400 N/A
Ford Focus FOCUS 1.5 TDCi 120 ST-Line Navigation 5dr Powershift Hatchback 4 Diesel £0 £400 £400 N/A
Nissan Qashqai 1.5 dCi Acenta [Comfort Pack/Tech Pack] 5dr Small SUV 5 Diesel £0 £400 £400 N/A
Mercedes-Benz C350e Sport Premium 4dr Auto Executive 6 Petrol Hybrid £0 £895 £895 N/A
Audi A3 1.6 TDI SE 5dr S Tronic Hatchback 8 Diesel £0 £400 £400 N/A
BMW 340i M Sport 5dr Step Auto [Business Media]
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