The new rates do not mean that all new cars registered on or after 01 April 2017 next year will be subject to higher tax than their current models. It depends, first, on whether the list price is over £40K, and secondly on emissions.
There is an initial first year tax for all cars (except those with zero emissions) on a sliding scale, based on emissions. For the second and successive years the tax on all cars is a standard annual tax of £140 ( but subject to an additional annual tax if the list price for the car is over £40K).
So e.g a car with emissions between 101 - 110 g/km will be subject to a first year tax of £140.00 and then each following year at the standard rate of £140.00. A car with emissions of 151 - 170 g/km will pay a first year tax of £150.00 then from the second year onwards this reduces to the standard rate of £140.00.
However for any car that has a list price of over £40K there will be an additional annual rate of £310.00 which will be paid for each year for 5 years from the date of first registration. So on a car with e.g emissions of, say, 266 - 255 g/km with a list price of over £40K the tax in the first year will be: the first year tax, based on the emissions, of £1700; plus the additional tax, based on a list price of over £40K, of £310. For the next 5 years the rate will reduce to the standard yearly rate of £140.00 plus the additional rate of £310. After 5 years it then reduces to £140 per annum.
So after 5 years form the date of fiirst registration (after 01 April 2017) the annual tax on all cars is only £140.00
But, turning back to my first point, taking the GTI as an example, it will will be cheaper to tax a new Mk 7 bought on or after 01 April next year than it is to tax my MK5 GTI. I currently pay £275 per annum. The current list price of the Mk7 is about £27500. Quoted emissions for the DSG version (if VW can be believed!) are 149 g/km. So as the list price is less than £40K it will not attract the additional tax. Its emissions place it, just, within the 130 - 150 g/km scale. This means the first year tax will be £200. This will then reduce from the second year onwards to the standard rate only of £140.00.
Another good reason to drive a GTI
