Can You Afford A Car After The NEW Vehicle Tax Changes?

After April 1st drivers will face new road tax changes on any newly registered car. For the first time, any car that uses fuel will be charged Vehicle tax, including hybrids. Whereas before, hybrid cars were exempt, now only electric cars are exempt because they produce zero carbon emissions. This means that Vehicle tax for the first years has risen dramatically on a large variety of cars. However, at the bottom end where emissions are lowest, there are lower rates of Vehicle tax.

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For any driver who registers a car for the first time will face the new Vehicle Tax regime. It is only the first year that sees a differentiation between the amount of tax you pay dependent upon your carbon emissions. In the second year that equals out for £140 per year and for cars that use alternative fuel, it’ll be £130 per year thanks to the £10 discount for using an alternative fuel source.

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Also for the first time, the value of the vehicle will be taken into account. For any car registered that has a value over £40,000, there will be an additional charge of £310 per year. Any car producing carbon emissions worth over £40,000 after the first year will be charged £450 in Vehicle Tax. After those five years, drivers will simply pay the standard rate.

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Type

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Standard Rate

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Value of £40