IF you are thinking of buying a brand new car this year then you will need to be aware of changes to car tax.

Owners could have to pay more tax on their brand new cars when the changes to Vehicle Excise Duty (VED) come into effect from April 1 this year.

Cars registered on or after April 1, 2017 will be affected by the changes. Those registered before will be exempt as will secondhand cars.

The first vehicle licence will be calculated on the vehicle’s CO2 emissions.

Standard cars

The majority of vehicles will then move to a standard rate of £140 annually from the second licence.

Zero emissions cars

Cars with zero emissions will not pay the standard rate of vehicle tax.

Premium cars

However, if a car’s list price is over £40,000 at first registration, the customer will pay the additional rate for five years after the end of the first licence.

Owners of cars over £40,000 will pay £450 a year, after the first vehicle licence. This is made up of

the £140 standard rate and £310 additional rate.

After five years the vehicle tax will revert to the standard rate of £140 per year.

Vehicles with a list price over £40,000 with zero emissions (including electric) will pay the additional rate of £310 a year for a five year period, after the first licence.

After this period, the owner will pay zero vehicle tax.

Alternative fuel vehicles will continue to receive a £10 reduction on vehicle tax rates.

CO2 emissions(g/km) | First year rate | Standard 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                                      £1,200               £140

226 - 255                                      £1,700                £140

Over 255                                       £2,000                £140

*Cars with a list price of over £40,000 when new pay an additional rate of £310 per year on top of the standard rate, for five years