The 2017 road tax shake-up:

From 1st April 2017, the cost of driving for many people in the UK is going to increase dramatically thanks to a comprehensive overhaul of the road tax system. The shake-up will see rates of road tax (otherwise known as Vehicle Excise Duty [VED] or car tax) now taking into account both emissions and list price, with a premium car penalty being brought into effect.

The changes will apply to new cars registered on or after 1st April 2017, and will see many cars that were previously exempt from taxation being landed with a bill. Under the new system, the only motorists who will have no tax to pay are those driving all-electric cars with a ticket price of less than £40,000.

Overall, the drivers who will face the biggest increase in cost are those driving hybrids and economical small cars. In certain cases, a significant 900% increase will be implemented. Thankfully for some drivers, however, certain sports cars and SUVs that cost less than £40,000 and produce emissions of 226g/km and more will work out cheaper to tax over time.

Here’s how the changes will affect some of the UK’s most popular vehicles:

Ford Fiesta 1.0T EcoBoost Zetec

Cost change: +£400 over three years

Currently free to tax, Britain’s best-selling car of the past seven years is the nippy 1.0-litre turbocharged petrol model. Under the new rules, however, tax will cost £120 in the first year, and £140 per year from then on. That’s a £400 increase over three years.

Porsche Panamera E-Hybrid

Cost change: +£925 over three years

The lucky drivers of the petrol-electric hybrid Panamera have been getting away with paying no road tax at all, but from 1st April 2017 that cost will increase to £25 in the first year and £450 per year from then on due to a premium car supplement and its 56g/km CO2 emissions. Our advice? Get it sooner rather than later…

Audi A4 2.0 TDI 218 Sport

Cost change: +£380 over three years

Under current rules, this version of the fun yet economical A4 is tax-exempt in the first year and costs £30 a year thereafter. Under the new rules, even with relatively low CO2 emissions of 114g/km, tax will increase to £160 in the first year and £140 per year from then on.

Dacia Sandero Access SCE 75

Cost change: +£380 over three years

The cheap and cheerful Sandero currently enjoys the benefits of paying no road tax in its first year followed by a £30 annual charge from the second year onwards. After 1st April 2017, the cost will increase to £160 in the first year and £140 per year afterwards.

Ford Mustang Fastback 5.0 V8 GT

Cost change: +£130 over three years

Although an initial increase will affect drivers of this new Mustang (as well as other big-engined sports cars and SUVs under £40,000) in the short term, they will actually be better off under the new system after three years.

The 5.0-litre V8 engine produces 415bhp and 299g/km of CO2, and whilst its first year cost is set to increase from £1,120 to £2,000, the following years’ charge falls from £515 to just £140 annually, meaning that drivers will actually be better off by year 4.

BMW i8

Cost change: +£980 over three years

This futuristic-looking petrol-electric BMW hybrid supercar emits just 49g/km of CO2 and is capable of 134mpg, meaning it costs nothing to tax under the current system. The new rules, however, mean that its hefty price of £104,540 combined with its CO2 emissions result in a £10 cost in the first year followed by annual charges of £450.

Kia Niro

Cost change: No change over three years

Thankfully for buyers of Kia’s totally electric Niro (which also comes as a hybrid and hybrid plug-in arriving in 2017), there will still be no tax to pay under the new rules coming into effect on 1st April.

Hyundai i10 1.2 87 SE

Cost change: +£380 over three years

This nippy supermini with a petrol engine emitting a fairly low 114g/km CO2 currently attracts no charge in its first year followed by £30 annually thereafter. Under the new rules, the cost will increase to £160 in the first year followed by £140 annually.

Lexus NX 300H Premier Auto

Cost change: +860 over three years

Another hybrid that loses its tax advantage under the new rules, the Lexus NX emits only 121g/km of CO2 but loses out due to its £40,000+ cost. Currently, buyers pay no tax in the first year followed by £100 annually. From 1st April, year one will cost £160, with subsequent annual charges set at £450.

Land Rover Discovery Sport 2.0 TD4 180 SE Tech Auto

Cost change: +£90 over three years

A modest increase of just £90 over three years is not something most drivers of the Discovery Sport are going to worry about. With current tax set at £130 for the first year and £130 thereafter, the new rules see this increase slightly to £200 in the first year and £140 annually from then on.

Hyundai Ioniq

Cost change: No change over three years

Thanks to its all-electric engine, drivers of the Ioniq from Hyundai (which is also available as a hybrid and plug-in hybrid coming later this year), will continue to pay no road tax from 1st April 2017.

Jaguar F-Type 3.0 V6 340 Supercharged Convertible

Cost change: +£1,060 over three years

Thanks to the F-Type’s 199g/km CO2 emissions and £59,050 ticket price, it earns itself a premium car supplement under the new tax rules coming into effect from April 2017. Over three years, tax will double at a cost of £1,200 in year one and £450 each in following years.

Peugeot 208 1.2 Puretech (82) Allure

Cost change: +£380 over three years

This speedy supermini can manage 64mpg and emits only 104g/km CO2 with its 1.2-litre Puretech turbocharged petrol engine, and under current rules costs nothing to tax in the first year and just £20 for each subsequent year. The new rules coming into force on 1st April 2017 will increase the cost by 900% over three years to £140 in year one and £140 per year thereafter.

Mercedes-Benz E-CLass E 350 E SE

Cost change: +£910 over three years

Although this hybrid model produces relatively low emissions of 49g/km CO2, its price of more than £40,000 attracts a premium car supplement that takes its tax bill from nothing to £10 in the first year and £450 per year annually from then on.

Skoda Fabia 1.2 TSI 90 SE

Cost change: +£380 over three years

Currently this Skoda supermini attracts minimal tax charges of £0 in the first year and just £20 per year from year two onwards. The new rules for this model, which emits just 107g/km CO2, hike the price of tax up to £140 in the first year and £140 per each subsequent year.

Volkswagen Passat 1.6 TDI S

Cost change: +£420 over three years

Volkswagen’s economical saloon is free to tax if bought before April 2017, but drivers who come late to the party will pay £140 road tax every year.

Mitsubishi Outlander PHEV

Cost change: +£290 over three years

The Outlander has proved particularly popular in the past few years, with the plug-in hybrid being free to tax from year one onwards. With the new rules in place from 1st April, buyers will need to hold back on the optional extras if they are to keep the cost below £40,000 and avoid the £310 yearly premium car penalty. Even without the penalty, the Outlander’s tax will rise to £10 in the first year and £140 for each following year.

Ford Mondeo 1.5 EcoBoost Titanium

Cost change: +£120 over three years

The Mondeo is a staple of British roads, and currently attracts a tax charge of £130 each year. The economical petrol version with emissions of 136g/km will, from April 2017, attract a slightly higher tax cost of £200 in the first year and £140 annually thereafter.

Tesla Model S

Cost Change: +£620 over three years

Although the Model S is an entirely electric car, its premium £40,000+ price tag earns it a road tax cost of £310 per year from year two onwards thanks to the premium car penalty. Thankfully, the first year remains free of any tax charge.

Volkswagen Up! 1.0 75PS

Cost change: +£380 over three years

An attractive little supermini with a current tax cost of just £40 over three years, the Up! will attract charges of £100 in the first year and £140 per each subsequent year from 1st April 2017.

WRX STI

Cost change: +£95 over three years

A quirk in the system spells good news for buyers of the WRX STI. The speedy 2.5-litre engine, emitting 242g/km of CO2, will cost £95 more in tax over the first three years but the cost reduces significantly from thereon in. Year one will increase from £885 to £1,700, but from year two onwards the cost will decrease from £500 to just £140 per year.

Vauxhall Astra Elite 1.6 CDTi (110PS)

Cost change: +£400 over three years

For now, buyers of the economical Astra Elite get the benefit of a £0 tax charge. From April 2017, it’s all change as year one increases to £120, and each following year costs £140 in tax.

Volkswagen Golf 2.0 TDI Match

Cost change: +£380 over three years

The frugal Golf emits just 109g/km of CO2, and currently costs nothing to tax in the first year and just £20 per year thereafter. Under the new rules coming into effect from April 2017, tax for this model will be set at £140 per annum.

Toyota Prius 1.8 VVTI Active

Cost change: +£305 over three years

Hailed as the eco-warrior’s car of choice, the Prius currently attracts no tax charge whatsoever. However, under new rules buyers will be charged £25 in the first year and a £140 bill per year thereafter.

Nissan Qashqai N-Connecta DCI 110

Cost change: +£400 over three years

Buyers who sign for the Qashqai before 1st April 2017 will be glad to know that their car will attract no tax charge at all. Purchase this economical model from April onwards and it’ll cost £120 in year one and £140 per each following year.