Car Road Tax Up For All But The Greenest Cars
 | High emission cars up £100 per year |
| 2p per litre rise in fuel duty delayed until October |
| Greenest cars are tax exempt |
Expected fuel duty rise of 2p per litre, announced autumn 2007 and due to take effect in April, will be postponed until October 2008.
Owners of cars in road tax band G (with carbon dioxide emissions at 226g/km or higher and registered from March 23, 2006) suffer a £100 in road tax as announced in the pre-Budget report last autumn. Bands C to F (121-225g/km) increase by £5. No change for bands A and B (0-120g/km).
2009 reform of Vehicle Excise Duty to encourage drivers to choose cleaner cars. Owners of small cars and compact family cars are likely to pay less road tax in future with a 150g/km threshold, while more cars will be exempt from road tax during their first year on the road. High polluting vehicles will pay double in their first year after registration.
New trials are planned with a view to introducing road charging in future.
Next: How the Budget will affect you and your car.
