Motorists are set to face yet another increase to the cost to car tax rates in Britain on April 1st. The increase to car tax, otherwise known as vehicle excise duty (VED), rates were announced in the Autumn Budget 2018.
Car tax price increases will increase the overall cost of car tax by up to £65 for motorists to account for inflation. For the majority of motorists, this will be a mere £5 upgrade but certain car owners will need to pay the higher fee.
Cars registered between 1 March 2001 and 1 March 2017 will see a maximum £15 added to their standard annual rate. Vehicles registered after April 1st could pay up to £65.
Cars which produce emissions below 120g/km of CO2 won’t see an increase in the price of their vehicle excise duty. New cars are expected to face the biggest increase and those petrol and diesel cars which produce 225g/km or more will be hit the hardest.
Cars that produce between 76g/km and 150g/km of CO2 will pay an extra £5. Vehicles that produce 151-170 g/km will pay £15, 171-190g/km will pay £25 extra.
The highest polluting vehicles that churn out high levels of CO2 will understandably have to fork out more. Vehicles that emit 191-225g/km will pay £40 more and 226-255g/km will pay £55.
The top charges will only really apply to supercars, or thirsty SUVs and performance vehicles producing over 255g/km of CO2. This follows the increase to diesel car tax in 2018.
You can find out which car tax band your vehicle is by using the Gov.uk website. A new car tax system was introduced in April 2017. First year rates increased for the majority of vehicles on the road and new second-year rates were introduced.
After the first year car tax rate, which is solely based on the amount of CO2 car produces, you will then have to pay one of three standardised rates, based on the fuel type your vehicle is.
Rates for second tax payment onwards
- Petrol or diesel – £140
- Electric – £0
- Alternative – £130
Drivers will, however, pay every so slightly more if they pay for it with direct debit or installments instead of in one go. In addition to these charges, if your car costs more than £40,000 you have to pay an extra £310 a year for five years.
Here’s how much your car tax would be with the rates applied per what fuel type your car is.
- Petrol or diesel – £450
- Electric – £310
- Alternative – £440
Vehicle Excise Duty price increases explained:
How tax for petrol and diesel cars compare before and after April 1st, 2017
Pre- April 1st, 2017
- 120g/km – £30
- 150g/km – £145
- 170g/km – £210
- Over 255g/km – £515
Post-April 1st 2017
- 120g/km – £160
- 150g/km – £200
- 170g/km – £500
- Over 255g/km – £2,000
In 2018, diesel cars faced paying a higher rate of vehicle tax if their vehicle doesn’t meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.
Drivers must pay one car tax band higher tax if their car does not meet the rates. This could add up to £500 on to the cost of their annual tax bill.
Here are new car tax bands for diesel cars if your vehicle does not meet the RDE2 rates.
1 – 50 g/km CO2: £25
51 – 75 g/km CO2: £100
76 – 90 g/km CO2: £120
91 – 100 g/km CO2: £140
101 – 110 g/km CO2: £160
111 – 130 g/km CO2: £200
131 – 150 g/km CO2: £500
151 – 170 g/km CO2: £800
171 – 190 g/km CO2: £1,200
191 – 225 g/km CO2:£1,700
226 – 255 g/km CO2:£2,000
Over 255 g/km CO2: £2,000