On April 1st 2019 car tax increased in the UK for the third year on the run. Chancellor Philip Hammond announced the rise in vehicle excise duty (VED) rose in line with RPI in the Autumn Budget last year. The stealth car tax rate will increase by as much as £65 for motorists across Britain. The changes are to the first-year car tax rate and also the second-year and luxury surcharge rates. Cars which have been registered between 1st March 2007 and 1st March 2017 will see an increase of £15 to their annual bill.Vehicles registered after this date will face paying up to £65 more.
Here are how the tax rates will affect you based on the CO2 you car produces:
- 76g/km and 150g/km CO2: +£5
- 151-170g/km CO2: +£15
- 171-190g/km CO2: +£25
- 191-225g/km CO2: +£40
- 226-255g/km CO2: +£55
- 255g/km CO2: +£65
A Treasury spokesperson said: “Vehicle Excise Duty will increase in line with inflation, but motorists across the country will benefit from the fuel duty freeze – saving them over £1,000 on average at the pumps overall since 2011.”
Second-year rates also increased by £5 each which takes rates for hybrid cars from £130 to £135 and petrol and diesel cars from £140 to £145.
The luxury car surcharge, applicable to any vehicles priced over £40,000, also increased from £10 to £320.
These standard charges and extra surcharges were introduced in 2017 when the system was overhauled. As well as the new standard rates, first-year rates drastically increased.
Vehicle Excise Duty price increases explained:
How tax for petrol and diesel cars compare before and after April 1st, 2017
Pre- April 1st, 2017
- 120g/km – £30
- 150g/km – £145
- 170g/km – £210
- Over 255g/km – £515
Post-April 1st 2017
- 120g/km – £160
- 150g/km – £200
- 170g/km – £500
- Over 255g/km – £2,000
A year later a decision was made to increase VED for diesel cars which did not meet the RDE2 emissions standard. If a car does not meet this standard then the driver faces one tax band higher VED which could add up to £500 to the annual bill.
Here are new car tax bands for diesel cars if your vehicle does not meet the RDE2 rates.
- 1 – 50 g/km CO2: £25
- 51 – 75 g/km CO2: £100
- 76 – 90 g/km CO2: £120
- 91 – 100 g/km CO2: £140
- 101 – 110 g/km CO2: £160
- 111 – 130 g/km CO2: £200
- 131 – 150 g/km CO2: £500
- 151 – 170 g/km CO2: £800
- 171 – 190 g/km CO2: £1,200
- 191 – 225 g/km CO2:£1,700
- 226 – 255 g/km CO2:£2,000
- Over 255 g/km CO2: £2,000
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