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Car tax rates to increase in April – how will it affect you?

Additional charges are due to come into play in April

Road tax rates are due to change in April, bringing a series of additional charges to nearly all drivers. It’s categorised into several different ways, with different owners paying different amounts depending on vehicle emissions.

Fortunately, we’ve waded through the figures to tell you just how much could be added to your road tax – officially known as Vehicle Excise Duty (VED).

The Autumn budget from 2018 stated that “from 1 April 2019 VED, rates for cars, vans and motorcycles will increase in line with RPI.” RPI stands for Retail Price Index, a measure of inflation published monthly by the Office for National Statistics.

For most drivers, this will mean an increase of £5 on your current annual road tax bill.

New cars and used cars registered since 2017

Buyers of new cars will be stung the most by the latest changes. For the first year after purchase, cars that emit more than 191-225g/km CO2 will pay £40 more, with cars emitting between 226-255g/km £55 more.

Cars that emit over 255g/km of CO2 will pay £65 more. These days, that sort of emissions level is generally only applicable to high-performance models with large petrol engines.

The fixed rate for the second year onwards will increase by £5 for most cars, or £10 for those with a list price of more than £40,000.

Used cars from 2001 to 2017

In truth, it’s not all doom and gloom for most motorists in terms of taxing your current car. Cars registered between March 2001 and March 2017 will have a maximum of £15 added to their annual rate, based on their specific CO2 emission levels.

Those drivers who use a car registered between these dates which emits below 120g/km will not see any increase in the amount they pay.

Vehicles with CO2 emissions ranging from 121 to 175g/km will find an extra £5 added to the amount they pay.

In the higher brackets, cars with CO2 emissions ranging from 176 to 225g/km will pay an additional £10, while those cars sitting in the highest emissions bracket will have £15 added.

Owners of zero-emissions vehicles won’t have to pay anything extra.

Pre-March 1, 2001

Cars registered before March 1, 2001 are taxed based on engine size. Those vehicles with an engine under 1,549cc will be accompanied by a £150 a year tax charge (in total), while those over 1,549cc will cost £245 a year to tax.

There has been no information released as yet to state whether or not these rates will rise on April 1.

Stuart Masson
Stuart Masson
Stuart is the Editorial Director of our suite of sites: The Executivecondominium, and . Originally from Australia, Stuart has had a passion for cars and the automotive industry for over thirty years. He spent a decade in automotive retail, and now works tirelessly to help car buyers by providing independent and impartial advice.

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