One month to go until new vehicle tax rates come into force

There’s only one month to go until the way vehicle tax is calculated will change.

As the changes will only affect new cars and some motorhomes, we thought we’d have a look to see which areas registered the highest number of new vehicles last year.

Top 10 postcodes for new vehicle registrations in 2016

The Birmingham postcode area was busiest buying new vehicles, with over 200,000 being registered.

Birmingham was followed by Milton Keynes and Guildford.

It’s no great surprise that postcodes in densely populated areas made the top 10, but it’s interesting that Glasgow (67,780), Manchester (32,177) and Liverpool (26,756) were just outside.

Not everybody will be affected by the changes immediately. The changes only apply to brand new cars and some motorhomes registered with DVLA on or after 1 April 2017. But we still wanted to make sure that everyone is aware at the same time, so we’ve been blogging regularly to let you know what DVLA’s been doing to get ready for the changes. We’ve been busy in other ways too, including:

  • working very closely with stakeholders to make sure that they’re aware of the changes, including several webinars, such as for the fleet industry
  • developing a new service to register new vehicles which will launch later this year.
  • launching a publicity campaign that’s being run across social media, blogs and messages on DVLA literature
  • getting our contact centre ready, who have an automated telephone service to quickly answer your questions

The changes take effect from 1 April 2017, so make sure you have a look at the new vehicle tax rates to see if they affect you.

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  1. Jon bright

    Hello, what are the plans for used vehicles tax brackets and subsequent costs per year ?
    Will used vehicles also fall into the same brackets and cost as new in the future?
    If so, do you know when ?
    I am covering approx 3,000 miles per annum.
    I am looking at changing my personal vehicle this year. Do I buy a petrol turbo car e.g. Toyota Auris?
    Or a diesel 1.6 diesel Auris?
    I have test driven a hybrid with 82 g/km co2.

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    • DVLA digital comms team

      Hi Jon,

      Any vehicle first registered before the 1 April 2017 will continue to be taxed under the current vehicle tax scheme i.e. based on CO2 emissions. Like all duties the Chancellor keeps vehicle tax under review each year. Should the vehicle be sold, it would continue to fall under the scheme which was in place at first registration.

      DVLA are not able to advise on which vehicle to purchase.

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  2. Ken Hawkes

    Very good and informative

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    Robbery. Considering the poor and pot-holed state of the roads! Time to introduce a "pay as you go" system where only the time/mileage spent on the roads is paid for!!

    Link to this comment
    • DVLA digital comms team

      Hi David,

      From 2020-21 the Government will spend all of the revenue raised from Vehicle Excise Duty (VED) in England on the English Strategic Road Network. Introducing a VED regime based on the number of miles driven would be complex and expensive to set up and administer. Introducing such a scheme would be contrary to the Government’s wider aim of a tax system that is simple to understand and easy to comply with.

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  4. Radcliffe

    very interested to see Milton Keynes came 2nd to Birmingham in new registrations. Must be the M1 corridor. However this will not help decrease the density of traffic in Bedford A421 area unfortunately or journeys to MK

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