New car tax charges come into force on Saturday

HMRC form with money
Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someone

April 1st sees new tax rules come into place for cars – which will significantly increase the amount buyers have to pay on certain models.

The new rules are based on emissions, reflecting the fact that currently so many cars have such low emissions they pay no tax, costing the Treasury millions every year.

If your car is already registered, the rate won’t change, but if registered after Saturday April 1st, a one-off fee will be due for the first year, dependent on its CO2 emissions. This means there may well be a rush on to buy new cars before the weekend!

After the first year fee, all vehicles will pay a flat rate of £140, with only completely emission-free vehicles (such as electric cars) exempt.

Emissions are measured on a g/CO2/km basis, and the new rates will be as follows:

New car tax rates from 1st April 2017

Emissions (g/CO2/km) First year fee Second year onwards
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 £1200 £140
226-255 £1700 £140
255+ £2000 £140

 

In addition to this, cars worth more than £40,000 will also pay an annual supplement of £310 between years two and six.

Do you think the new rules are fair, or too much? Will you be buying a new car before the change? Let us know in the comments below – and if you’d like to help make back some cash towards the new costs, offer out your spare seats now!

Author Lex Barber

on

Leave a Reply

Your email address will not be published. Required fields are marked *

You might also like…