First Year Rates (FYRs) of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle. A flat Standard Rate (SR) of £140 will apply in all subsequent years, except for zero-emission cars for which the SR will be £0. Cars with a list price above £40,000 will attract a supplement of £310 on their SR for the first 5 years in which a SR is paid.
All cars first registered before 1 April 2017 will remain in the current VED system, which will not change. So if you're considering buying a small car with low emissions in the near future, register it latest March 2017 to get current (lower) rates. And if you're considering buying a new high emissions car costing below 40,000 pounds then wait till the new system kicks in after April 1st 2017.