The cars about to be clobbered with 25 times more tax revealed
MOTORISTS looking to purchase a new car are being reminded that they have just over one week to buy before they face a potential tax hike of up to 2475 per cent.
Changes to Vehicle Excise Duty (VED), otherwise known as car tax, mean that the cost of taxing a car bought after April 1 could be up to 25 times more.
The amount you will have to pay depends on what kind of car you buy. Cars already on the road won't be affected by the changes.
Conventional hybrid cars such as the Lexus GS300h and RX450h will be hit hardest by the changes, but even some of the most environmentally friendly plug-in hybrids are being targeted by sharp tax increases.
It means that owners of the Lexus GS300h and RX450h will see their tax bills go from £40 over three years, to £1,030 - a 2475 per cent increase, according to What Car?.
The near-£1000 hike in the three-year tax bill is made up of a £150 first-year rate based on its CO2 emissions, followed by two subsequent payments of the new hybrid flat rate of £140 per year, which applies to all vehicles with emissions above 0g/km CO2.
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All vehicles that cost more than £40,000 are subject to a further £310 a year charge after the first year, and up to the sixth year.
Under the new legislation, only zero-emissions cars costing less than £40,000 will be free of tax.
Brits wanting to buy a new car are being urged to act quickly in order to avoid a first year tax hike.
Motorists who bought one of the UK's top selling cars in the first months of this year are likely to have avoided a hefty tax premium, as six of this year’s top 10 sellers will face some of the biggest tax hikes.
From April 1, some models of Vauxhall Astra, Ford Focus, Nissan Qashqai, Mercedes C-Class, Audi A3 and BMW 3-Series will command an extra tax bill of between £400 and £1,000 over three years.
What Car? editor Steve Huntingford said: “The new tax laws are designed to increase the advantage of running a zero emissions car, but they make things much more complicated and push up the price of many ‘bread and butter’ models.
"Fortunately, there are still opportunities to get a great deal.
“Buyers still have a small window to snap up a bargain before 1 April, and there are a number of grants for plug-in hybrids at their disposal."
The Audi, Mitsubishi and Volvo remain eligible for a government grant of £2,500 thanks to their low CO2 emissions of less than 75g/km.
Why are new car tax rules being introduced?
THE changes are being brought about thanks to the average new UK car owner not paying any tax due to reduced CO2 emissions.
The current CO2 emission bands were introduced in 2001, back when the average UK new car emissions was 178 gCO2/km.
Since this time, in accordance with EU emissions targets, the average new car emissions have fallen to 125 gCO2/km.
Now a vast number of ordinary cars pay no tax at all if they fall in the lower bands of the table.
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