Swindon Motor Dealer Addresses Road Tax Confusion
A major shake-up in the way road tax is charged has left drivers confused, according to the boss of a major car dealership in Swindon.
Dominic Threlfall, managing director of Hyundai and Suzuki franchise Pebley Beach, says buyers of new and used cars are puzzled by what the new legislation means for them.
New rules replace bands introduced in 2001, which incentivised new car buyers to choose models with lower CO2 emissions.
As a large percentage of new car sales now attract a zero or low rating, the government has introduced a new tax regime which it reckons will raise an extra £1.4bn over the next four years.
From 1 April, all new cars will be taxed against three new Vehicle Excise Duty bands - zero, standard, and premium.
Taxation will be calculated on a combination of emissions and the list price of the vehicle.
After April 1, only cars that emit zero CO2 - like electric vehicles and those utilising hydrogen fuel technology – and cost less than £40,000 will qualify for zero road tax.
Most petrol and diesel cars will attract a standard rate of £140 a year, while hybrid owners will pay £130.
Additionally, the government is introducing new first year rates, which are calculated on CO2 emission levels.
Most car buyers will pay between £100 and £160 for the first year rate, although the most polluting cars – emitting 255g/km+ of CO2 or more – will pay a levy of as much as £2,000.
“The new rules only apply to new car buyers after April 1,” said Dom, “so if you get in quick you can save a few hundred pounds on the running cost of a diesel, petrol, or hybrid.
“Sadly, the drivers most badly hit will be those buying hybrids and low emission vehicles, who might have expected a zero-rated road tax.
“The good news, though, is that some of the extra revenue will be spent on improving the roads - so what you’re spending on road tax you might make back on lower repair bills.”
