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Older cars hit by highest car tax
30 April 2008
The Government has admitted that it intends to include cars built since March 2001 in the highest tax band of new road tax regulations, due to come into force next April.
The new tax rules are being introduced in stages, and will see cars that produce more than 225g/km being charged £300 next year and up to £445 in 2010, compared with the current rate of £210.
Regulations currently state that cars produced before March 2006 and after March 2001 will be exempt from the highest Vehicle Excise Duty (VED) band, but the government’s rethink means that these cars could be subject to as much as £245 more tax per year.
The new tax rates were announced in this year’s budget, which you can read more about by clicking here.
A new showroom tax was also announced in the 2008 budget, which will see car buyers paying up to £950 for the privilege of buying new.
Vicky Parrott
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