Owners of cars registered before 2017 are now facing significantly higher vehicle tax bills, with some models attracting an annual charge of £275 under new rates introduced by Prime Minister Andy Burnham and John Healey.
The tax changes, which were implemented earlier this year, mean that drivers of older vehicles could be paying hundreds of pounds more than those with newer cars. While most vehicles produced after 2017 are subject to a flat £200 payment, the situation is different for older models.
Emissions-based charging system
Vehicle tax is calculated based on emissions levels, with bills ranging from £20 up to £790 depending on the model. The tax bands are structured from A to M on an increasing scale, with most cars falling between bands E and H.
For example, the charge for Band G is £275. Meanwhile, owners of some of the cleanest vehicles emitting under 100g/km of CO2, which were previously exempt, now also have to pay tax – the charge for these cars is £20.
Costs vary for cars made 2001-2017
Costs can fluctuate widely for cars made between 2001 and 2017. Drivers are being advised to research tax costs carefully before purchasing a vehicle, as the choice of car can make a difference of hundreds of pounds in annual tax.
Tax rates were hiked earlier this year and are now in place under the new leadership of Andy Burnham and John Healey. They are likely to increase again next year in line with inflation.
Expert advice on tax bands
Andy Wood, tax expert at Tax Barrister UK, said: “A lot of drivers still assume road tax is calculated purely on the age of the vehicle, but emissions remain one of the biggest factors in determining how much motorists pay.”
“Even relatively modest differences in CO2 output can place vehicles into entirely different tax bands, which can have a noticeable impact on annual running costs,” Wood added.
Drivers of older cars are urged to check their vehicle's specific tax band to understand the exact charge they face, as the differences between bands can be substantial.
