86% of British motorists unaware of imminent car tax changes
Major changes to the way new cars are taxed will come into play from the 1st April 2017, yet many drivers are totally unaware of the tax and its implications for them.
The new method of calculating road tax will see only those who buy a new or fully electric car under £40,000 being exempt from road tax.
Of 4,000 motorists recently surveyed on the changes, the startling results revealed that only 6% of respondents knew about the tax when questioned.
A report from Oxford Economics discovered that the new Vehicle Excise Duty (VED) regime will equate to a 400% tax rise.
VED: What does it entail?
● As of 1st April, all new cars will be charged road tax based on their CO2 emissions. This means new “greener” petrol, diesel and hybrid vehicles, which were previously exempt, will now have to pay.
● Following the first year after purchase, all new cars will then be charged £140 a year.
● Cars costing over £40,000 will have to pay more with a levy of £310 a year.
● Only fully electric vehicles or those powered by hydrogen cells will be exempt from paying any road tax.
● Car makers take 10-12 weeks to fulfil a new car order, meaning those want to get a new car before the rules change may find this difficult.
● Cars with emission rates of 255 will need to pay £2000 in the first year, followed by the standard rate of £140 unless their car was over £40,000 on purchase.
Are you in the market for a new car? Talk to us at Premiercare Insurance Brokers about a suitable policy to ensure your vehicle is fully covered, including options such as sound systems, replacement key, and GAP insurance.
Call 0844 259 0033 or email firstname.lastname@example.org for more information.
You can find out more about the new VED system by reading the Government’s official guidelines.