Are you aware of new road tax rules coming into force in April?
- Credit: PA
At the beginning of next month major changes will radically overhaul car tax rules in Britain and some drivers could have to pay hundreds of pounds more each year to keep their car on the road.
The proposals were first announced by former chancellor George Osborne two years ago to reflect changes in emissions technology in newer cars.
Under the new rules only new cars which are fully electric and cost less than £40,000 will be exempt from paying road tax. The changes will only affect cars and some motor homes that are first registered with DVLA from April 1 2017.
The changes explained
Vehicle tax for the first year will be based on CO2 emissions. An example of this is that a car emitting 99g/km of CO2 bought before April 1 will be free of road tax for ever. But those emitting the same about of CO2 after that date will cost £120 in the first year, and £140 a year thereafter.
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Generally after the first year, the amount of tax that needs to be paid then depends on the type of vehicle. Diesel or petrol vehicles will be charged £140 a year tax, alternative fuel vehicles will be charged £130 and there will be no tax for vehicles with zero C02 emissions.
What about if my new car has a list price of more than £40,000?
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For the first year the rate of tax will be based on CO2 emissions like any other vehicles. After the first year, the rate will then depend on the type of vehicle (for example diesel) and an extra rate of £310 will be added in tax for the five years.
After those 5 years, the vehicle will then be taxed at one of the standard rates.
• To find out more about the changes visit the DVLA website.