Road tax changes announced in Chancellor Philip Hammond’s Autumn Budget will come into force from April 1 – but will they mean you pay more to keep your car on the road?
Here’s all you need to know about the April 2018 road tax changes.
What cars will be hit by the April 2018 changes?
The changes will impact first-year tax rates for new diesel vehicles not meeting real-world Euro 6 standards.
This means that new cars can emit up to 1.5 times the current 80mg/km NOx limit under real-world driving tests to avoid being bumped up a tax band.
The changes will apply to new vehicles first-registered from April 1, 2018. Older cars will not be hit by the hikes.
Does this apply to vans?
No – the increase in charges is reserved for cars.
Why are the rates changing – again?
These changes in rates can be seen as a realignment ahead of bigger changes coming into force from September 2019, when methods used to measure emissions will change.
New emissions testing will swap from the laboratory to real-world driving situations. This is expected reveal a significant increase in emissions levels for most cars – meaning bigger bills for many drivers.
So, give some examples of cars that will cost more from April 1, 2018 – and by how much!
According to AutoExpress, cars such as the Ford Fiesta are likely to owe £20 more under new first-year tax rates, but higher-polluting motors, like the Porsche Cayenne, are expected to be hit by hikes of up to £500.
So it’s only new-car drivers that’ll pay more?
No. Anyone who bought a car just before April last year could be hit by an increase in the standard rate tax payment.
The new standard charge will be £140 – and £450 per year for vehicles costing over £40,000.