Major Tax Hike For New Owners

Potential new car buyers need to be aware that they could face an extraordinary hike of up to 2,475 per cent when taxing a car bought after April 1, 2017.

The new legislation will now mean that only the ultra-green zero-emissions cars with a price tag of under £40,000 will be tax-free.

According to What Car? magazine, buyers of perceived low pollution hybrid cars such the Lexus GS300h and RX450h will surprisingly be the most considerably hit, seeing tax for these cars escalate from £30 over three years to a whopping £1,030. Even some of the most environmentally friendly hybrid cars will also be besieged by a harsh tax hike.

The astonishing near-£1000 rise in the three-year tax bill will include an emission-based £150 tariff for the first year with two successive payments of £140 per year for a hybrid flat rate applying to all cars with over 0 gCO2/km emissions. Owners of vehicles valued at over £40,000 will also then face a further £310 per year up to the sixth year.

Depending on what kind of car you buy after April 1 will determine how much the tax rises. Some of the more popular models of cars such as the Ford Focus, Audi A3, BMW 3-series, Nissan Qashqai and Mercedes C-class, will be looking at a further £400-£1000 over three years.

The good news for current car owners is that this will not affect cars already on the road.

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.”

Buyers of the Audi, Mitsubishi and Volvo continue to be eligible for a government grant of £2,500 due to their low CO2 emissions of less than 75g/km; highlighting further the benefit of going greener when purchasing a new car and therefore supporting the government’s commitment of reducing car emissions to zero by 2050.

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