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New Car Tax Changes

car tax
DVLA new car tax changes set to cost motorists hundreds of pounds each year

If you think you are already paying a lot to run your car, then the new DVLA car tax rules, expected to arrive in April, could cost you hundreds more each year.

The former Chancellor of the Exchequer, George Osborne, first unveiled these major changes back in 2015. The new car tax rules will reflect the changes in the emissions technology found in new cars. This leaves many motorists facing a big hike in the cost of motoring. From April, the car tax payable for some vehicle models will rise significantly each year. The only exemptions will be hydrogen and electric vehicles.

Why are the car tax rules changing?

New Car Tax Changes
Car Tax is going up by how much??

The current car tax scheme was introduced in 2001 and based on CO2 bands. Back then the average car emissions in new cars stood at 178 gCO2/km. But since 2001, the average for new car emissions has fallen to 125 gCO2/km, in line with new EU targets. Essentially, this means that a significant number of cars will now come under the lower-rated VED (Vehicle Excise Duty) categories – or zero bands, meaning that drivers do not need to pay car tax at all.

Who do these new car tax changes affect?
The changes only affect new or used vehicles registered on or after April 1 2017. With the exception of hydrogen and electric cars – which are exempt – all new vehicles will have to pay the £140 standard car tax rate.
Cars purchased before April 1 with emissions of 99g/km will not have to pay road tax. In the first year, vehicles purchased after the April 1 cut-off, will cost £120, followed by £140 each following year.

Under the new changes:

  • a car emitting 131g/km will now be taxed £200 – an increase of £70.
  • vehicles releasing 151g/km will see tax rise to £500 (up £320).
  • a car producing 171g/km will shoot up to £800, instead of the current £295.
  • vehicles that emit 255g/km will see the steepest climb. It currently costs £1,100 to currently tax these vehicles, but this will rise to £2000.
  • Luxury, low emission cars do not escape either. They might be currently free from tax, but the new rules will mean a yearly fee of £310 from the second year.

How can I avoid paying the new Car Tax prices?

Have you ever considered car leasing?

There is nothing better than driving in a modern car, having the reliability, cost effective running costs and thus peace of mind.  There are so many advantages of car leasing one of which is that with a CVS Ltd bad credit car lease we will pay for your road tax saving you money, and the worry of the new road tax changes coming into place.

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