INCREASING CAR EXISE DUTY
VED, often called road tax, Car Tax is on the rise meaning that you will have to pay more for your cat tax.
As before, the amount of tax you'll pay will depend on your new car's CO2 emissions. Those that emit zero grams per kilometre of CO2 will pay zero, while petrol- and most diesel-powered drivers (including hybrids) that emit between 1g and 50g per kilometre will pay £10 for the first 12 months.
CAR TAX EXAMPLES – WHAT YOU MAY PAY
Cars that emit between 51g and 5g per kilometre will continue to pay £25 for the first year.
However, cars that emit between 76g and 150g per kilometre of CO2 will see Car Tax VED rates rise by £5 this year - to £220.
The more CO2 a car emits per kilometre, the greater the increase in road tax for 2021.
The biggest step-up in VED applies to cars that emit more than 255g per kilometre of CO2. These will set you back £2,245 to tax for the first year, up from £2,175 in 2020.
You can find out how much more you'll pay, here.
The standard rate - the amount you pay after the second year - for cars registered on or after 1 April 2017 will be £155 a year for anything other than zero-emissions vehicles.
DIESEL AND PETROL CARS
"People with petrol and diesel cars will see vehicle excise duty rise to £155 a year, while the tax on premium cars – i.e. those costing more than £40,000 new – now pay an eye-watering £335 a year for the first five years of ownership.
REFRENCES
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