Drivers of these popular family models will see car tax double from April
by Richard Guttridge, https://www.birminghammail.co.uk/authors/richard-guttridge/ · Birmingham LiveSome of the most popular family cars on the roads will be subject to huge tax hikes from April under Government changes. First-year tax charges will double for cars with 76 to 90g/km emissions.
This is currently £135 but will be rocketing to £270, the Labour Government has announced. Cars in this emissions category include the Ford Mondeo, Peugeot 308, Volvo V40, Mini Hatch, Ford Focus Estate, BMW 1 Series and Volkswagen Golf.
The increased charge relates to new cars in the first year they are registered - so only owners of new models will be affected. After that, the tax amount drops to the standard annual rate, currently £190 - though the Government says this is "subject to change".
READ MORE: Fords and Land Rovers among cars facing huge £2,745 tax hike from April - full list
Get our best money saving tips and hacks by signing up to our newsletter
New cars are placed in emissions categories based on how polluting they are. This determines how much has to be paid by owners in their first year after registration.
Changes from April mean owners of electric vehicles will have to pay road tax for the first time. The Government explained: "Vehicle Excise Duty first-year rates are paid for the first year of a car’s lifecycle, at the point of registration, and vary based on emissions. From April 1, 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars.
"From April 1, 2025, zero-emission cars will pay the lowest first-year rate. Rates for cars with CO2 emissions of 1 to 50 grams per kilometre and 51 to 75 grams per kilometre, including hybrid vehicles, will increase to bring them closer to higher emitting cars. Cars in the bands for CO2 emissions of 76 to 90 grams per kilometre and above will pay double the equivalent rates from 2024 to 2025."
It added: "The Government is committed to supporting the transition to electric vehicles. This change will increase the incentives towards new zero-emission cars at the point of purchase, and support take-up of new electric vehicles, which is crucial to achieving Net Zero. Revenue from this change will also help support public services and infrastructure across the UK."