How much car tax will I need to pay?
Posted on 18th July 2019 at 11:22
The dreaded c-word: Car Tax. We pay it every year, without really questioning what it’s used for, or what we’re paying. But, it could catch more people’s attention in the coming year, as it’s due to increase. Your solicitors in Lancaster have put together as much information as possible about the changes.
Currently, it’s on a tiered system (which you can find, here), depending on how much CO2 a car produces, however under the new rules, cars are split into two groups, depending on their registration date – those registered before 31st March 2017, and those registered afterwards.
Any cars registered after this date will still be rated on a tiered system, which you can find details of here. Under the new rules, a Fiat 500 with CO2 emissions of 113 g/km (we’ve not just plucked a random car, our very own Hope Jordan swears by her mint-green fiat!), would cost £170.00 in its first year, whereas, having been registered before this date, only costs £30.00 per annum. If you’re unfortunate enough to have a less economically friendly car, say one that produces over 255 g/km, you could be paying £2,135.00. That’s more per month than it costs to insure a lot of cars!
On top of the new tiered system, cars with a list price of over £40,000.00 attract an additional rate of up to £465.00 (or £488.25 if you pay in monthly instalments).
Perhaps that new car just doesn’t seem worth it anymore!
However, there are some other variables to consider. Cars more than 40 years old are exempt from tax, and cars registered before 1st March 2001 are taxed based on their engine size, and not CO2 emissions. You can read the AA’s full blog on car tax, here.
Also, the new system changes after the first year, and is based on a standard flat rate for all vehicles, which is up to £145.00 (or £152.25 if paid monthly).
So, if you’ve managed to keep up with the new changes, then fingers crossed you’ll be able to use this information when you’re purchasing your new car. If, like our team of solicitors in Lancaster, the new car tax has baffled your mind a little, then make sure you pay what you’re asked to, when you’re asked to pay, and you should be able to stay out of trouble!
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