Road tax can be a pain, especially when there are changes, as there is going to be as of 1st April 2018. This new change means that all new cars have to pass the Real Driving Emissions step 2 test. The test limits all new cars to pollute up to 1.5 times the current 80mg/km. According to estimates, less than 2 million cars will be subject to the VED band jump. However, cars like the Ford Fiesta may see a £20 rise in the first year and higher polluting models, like the Porsche Cayenne, may see an increase of up to £500 in the first year.
New tax bands for diesel cars are as shown below:
If you’re looking to buy a new car and are trying to beat the changes to get tax as cheap as possible, buy an electric car under £40,000 and you won’t be charged any tax at all! However, if you buy an electric car which is over £40,000, you’ll have a £310 surcharge for the first five years and then for years after, you won’t have to pay any tax. This is the same for other cars as well as electric models. This means that for the first five years, you will pay £1550 in road tax.
Petrol cars are expected to have a £140 rise on tax, similar to diesel cars, depending on the CO2 emissions of the car. The changes to tax is dependent on the CO2 emissions.
See table below:
Vehicles purchased and/or registered before 1st April 2017 are not affected by this tax change.
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