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The New Car Tax Rules Mean We Could Be Paying More For It

The New Car Tax Rules Mean We Could Be Paying More For It

Sh*t the bed!

Patrick Hulbert

Patrick Hulbert

And I thought 2017 was going to be a better year than 2016.

Apparently, before George Osborne left his job as Chancellor of the Exchequer, he left a nasty surprise. He thought car tax wasn't making enough money for the government as car manufacturers lowered the CO2 emissions so much. Right now, about a quarter of new cars on the road aren't paying any tax because their emissions are so low, which angered him. You think that lower emissions would be a good thing, but greedy George went and changed the tax laws which come into effect on April 1st.

It would be April Fool's Day, wouldn't it.

So before, low-emission and diesel cars were exempt from paying car tax but now only electric and hydrogen cars don't have to pay anything.

Not charging for charging. Credit: PA

If you're registering a new car after April 1st, you better watch out. If you're planning to keep your current car for the time being, don't worry so much.

But for people looking to buy a new car in 2017, it's a huge hike in taxes. For example, owners of a Peugeot 208 1.2 PureTech currently pay £20 a year; after April 2017 that would rise to £140.

Ford C-Max 1.5TDCi (120) Zetec has CO2 emissions of 104g/km and the owners currently pay £0 in tax, but in the first year of this new tax law would pay £140. The same would go for the Lexus Is 300h Hybrid auto Luxury and the VW Passat 1.6 TDI S.

For Honda CR-V 2.0 i-VTEC SE 4WD drivers, which has CO2 emissions of 173g/km, the current tax is £300 a year but that would go up to £800!

From the second year onward, the CO2 scale is ignored and there are two flat rates. If you have a zero-emissions vehicle then it's still zero, and everyone else has to pay £140.
For luxury cars it's even worse. If your car cost over £40,000, then you'll have to pay a five year rate of £310 a year, but after that it goes back to £140, like everyone else. Maybe I'll just get a bike.

Here's a chart which explains the new charges coming into effect.

Words Laura Hamilton

Featured Image Credit: PA

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