Car tax 2018 changes: What’s new, how it will affect you and how much it'll cost
NEW vehicle excise duty rates will came into force on April 1st, seeing thousands of drivers face inflated car tax bills in the first year. Here is everything you need to know about the new rules, how much it could cost you and why they are being introduced.
Philip Hammond outlines new diesel tax plans
The new vehicle excise duty rates came into effect on April 1st.
It is just a year since car tax rates increased for a large portion of British drivers, and now some of these motorists face even higher tax bills.
In April 2017, the cost of car tax in the first year increased significantly for thousands of drivers.
Authorities wanted to put pressure on UK motorists to make the switch to cleaner, lower emissions cars so increased the price of car tax in the first year across the board.
Only cars that produce zero emissions and cost less than £40,000 can dodge paying car tax, under the new rules announced last year.
Any car that costs £40,000 or more has to pay a luxury car surcharge of £310 for the first five years.
A car that produced 120g/km C02 emissions pre-April 1st 2017 paid just £30 for car tax, while a car registered after that date pays £160.
Car tax will increase for diesel drivers from April 1st
Vehicle Excise Duty price increases explained:
How tax for petrol and diesel cars compare before and after April 1st 2017
Pre- April 1st 2017
120g/km - £30
150g/km - £145
170g/km - £210
Over 255g/km - £515
Post-April 1st 2017
120g/km - £160
150g/km - £200
170g/km - £500
Over 255g/km - £2,000
In addition to the inflated first year fees, a set of standardised second and subsequent year rates came into force.
These standard rate charges will vary for drivers depending on what type of car they are and what fuel they use:
-£140 per year for petrol and diesel vehicles
-£130 per year for ‘alternative fuel’ vehicles, such as hybrids
-£0 per year for zero emissions vehicles, such as fully electric
April 2018 car tax charges explained
In the Autumn Budget 2017, Chancellor Philip Hammond announced that car tax rates would be increasing in the first year for diesel car owners.
Stricter rules for diesel cars are to be imposed from April 1st, in an attempt to clampdown on the amount of highly polluting cars are on the roads.
Drivers of diesel cars, which do not meet a pre-determined emissions standard, will be required to pay a band higher car tax than they are currently paying.
Diesel cars will have to meet the real-world driving emissions standards, which means that they can emit no more than 120mg of nitrogen oxides per kilometre.
This is problematic due to the fact that it is 1.5-times the current limit of 80mg/km, which means that no new car can currently meet these standards.
Compliance for these emissions standards is not mandatory from manufacturers until 2020.
This could result in diesel owners paying up to £500 more a year to tax their vehicle.
The new rates only apply to cars bought and registered from April 1st 2018.
Some diesel drivers could face paying up to £500 in car tax
Here are new car tax bands as of April 2017 compared to the new rates set to be introduced as of April 2018 for diesel drivers:
1 - 50 g/km CO2
CURRENT RATE:£10
FROM 2018: £25
51 - 75 g/km CO2
CURRENT RATE: £25
FROM 2018: £100
76 - 90 g/km CO2
CURRENT RATE: £100
FROM 2018: £120
91 - 100 g/km CO2
CURRENT RATE: £120
FROM 2018: £140
101 - 110 g/km CO2
CURRENT RATE: £140
FROM 2018: £160
111 - 130 g/km CO2
CURRENT RATE: £160
FROM 2018: £200
131 - 150 g/km CO2
CURRENT RATE: £200
FROM 2018: £500
151 - 170 g/km CO2
CURRENT RATE:£500
FROM 2018: £800
171 - 190 g/km CO2
CURRENT RATE: £800
FROM 2018: £1,200
191 - 225 g/km CO2
CURRENT RATE: £1,200
FROM 2018:£1,700
226 - 255 g/km CO2
CURRENT RATE: £1,700
FROM 2018:£2,000
Over 255 g/km CO2
CURRENT RATE: £2,000