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Car Tax Changes April 2019 – What You Need To Know

Wednesday, March 13, 2019

If you’re thinking of buying a new car then you should be aware of the tax rises coming into place in April 2019. If you use your own vehicle for work you will probably be aware of the tax it’s costing you to do so, however what you may not be aware of, is what tax it can save you! Intrigued? Then read on: 

Back in April 2017, a new system of Vehicle Excise Duty (VED) was introduced and one thing that it changed was the tax banding. Before, if you had a car or van with low emissions (up to 100 g/km) then you wouldn’t be paying any emissions tax on it at all, even if it pumped out up to 130g/km of CO2. However, under the new rules, low emissions are no longer enough. Unless your car is completely emission free (fully electric and hydrogen-powered models only) then you will no longer not hit that zero-tax spot. 

For petrol and diesel cars registered from the 1st March 2001 to the 1st of March 2019, you should only expect a maximum tax rise of £15 per year if your emissions are below 120g/km, and if you have a car that has emissions of up to 166-175g/km you’ll be paying an extra £5. If you’re between the 176-185g/km and 201-225g/km bands it’ll be £10 more, while anything higher will run up another £15 on top. 

If your car was registered before the 1st of March 2001 however, the tax that you will pay will be based on your engine size. If it’s under 1,549cc then a £155 yearly charge will apply, engines over that size will cost you £255. For new cars, the hike could be even higher. If you’re planning to buy a new car, here are the tax rises you should expect: 

• 76-150g/km: £5 rise
• 151-170g/km: £15 rise
• 171-190g/km: £25 rise
• 191-225g/km: £40 rise
• 226-255g/km: £55 rise
• Over 255g/km: £65 rise 

After the first year, owners of newer vehicles will also have to pay a £145 charge for petrol and diesel cars, or £135 for 'alternative fuel' vehicles, and if you have a car that is worth over £40,000 you are looking at a surcharge of £320 on top of the standard rate for the first 5 years of ownership. 

So why is this happening? Well the short answer is that the old system might have worked a little too well. The push toward low-emissions vehicles was so strong that the Treasury began losing out, and with most new cars drawing little or no Vehicle Excise Duty, the taxman began to worry. 

If you’re curious about what the new 'green' vehicles have to offer, then now may be a good time to start looking around. Alternatively, if you’re a committed petrol-head then it looks like you’ve got some numbers to crunch and decisions to make.

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