The government aka dear Mr George Osbourne is moving the boundaries and charges on the emission of carbon dioxide from 2017 so cars emitting more then 50g/km, previously 100g/km will be subject to road tax or Vehicle Excise Duty (VED) as its now being called, so as to by pass the fact very little is spent on the roads.
New cars registered from the 1st April 2017 will receive an additional surcharge based on the emissions. This extra tax charge will range from £10 for cars with 1-50g/km Co2 upto £2000,00 for cars with 225g/km Co2. In addition to this first years extra charge, cars with a book value of 40k plus will receive a continued bill for the next 5 years.
So, if you purchase say a Tesla, or are holding out for the electric Evoke, a nil emission all electric car your road tax will be zero but it will cost £310 from it’s 2nd birthday till it’s 6 years old, a total of £1,550. Hardly an incentive to go green, but Mr Osborne believes it’s a way of making the rich pay as opposed to the average family who cannot afford a top end car.
If your lucky enough to have a high end Land Rover, Mercedes, Jeep etc in your sights then hurry. This 40k + cost level with an engine pumping out more the 225g Co2 is really going to hurt the wallet, with your 1st year costing £2k plus the £140 road tax the following years will cost £450 plus the £140, a total of £5090.00 over the first 6 years of ownership.
Any good news? The MOT requirement on a new car will be extended from the current three years to four, oh and there is a promise that the money raised from this extra charge on new vehicles will be actually spent on maintaining the roads.
The Premium tax was slammed by Jaguar Land Rover, which said: “Jaguar Land Rover believes placing a tax on vehicles over £40,000 sends a very negative symbol to the UK’s premium automotive industry. The UK should be proud of its premium car manufacturers, which support huge numbers of jobs and investment, not specifically penalise it”. Meanwhile, Mitsubishi, which has seen a surge in sales of its plug-in hybrid Outlander, is less fazed by the revamp, saying: “We wouldn’t expect the changes to affect PHEV. There are a lot of other incentives in terms of economy and cost of running the vehicle.” (Sourced from whatcar.com)
What about us lovers of the last century cars and classic 4×4’s? Well our green approach by refusing to fill the earth with unnecessary waste and the energy saved from building one less modern car required, apparently things will stay the same, but then we’re fuelled by passion.