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Will you end up paying more in car tax come April?

Written by: Neil

Many motorists in Britain could end up paying hundreds more every year when new DVLA car tax rules come into force in April.

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 some car models will cost significant more to tax each year – and only electric and hydrogen cars will be exempt, Kent Live reports

Here’s more information on why the change is being made, how you will be affected and what you can do now to save money.

Why is this change being made?
The current structure based on CO2 bands was introduced in 2001 when average UK new car emissions were 178 gCO2/km.

The Band A threshold of 100 gCO2/km below which cars pay no VED was introduced in 2003 when average new car emissions were 173 gCO2/km.

Since then, to meet EU emissions targets average new car emissions have fallen to 125 gCO2/km.

This means that an increasingly large number of ordinary cars now fall into the zero- or lower-rated VED bands, meaning they pay no tax at all.

How will you be affected?
Under the new rules – only electric and hydrogen cars will be exempt – and all other cars will pay a flat rate of £140.

A car emitting 99g/km bought before April 1 will be free of road tax for life.

Those bought after the date will cost £120 in the first year, and £140 a year thereafter.

Get the full breakdown of new tax laws here.