Wednesday 29 March 2017

DVLA Tax Changes Means Your Tax Could Surge 25% Higher Than An Average


Car tax price increases could see some drivers pay up to 2475 per cent more on their tax from next week than they would currently.

Research by WhatCar? has shown that taxing a car post-April 1st could cost drivers over 25 times more than it does now and some environmentally friendly hybrid cars will be stung by the rising fees.

Hybrid cars such as the Lexus GS300h and RX450h will be hit the hardest under the new rules.

Currently the GS300h and RX450h pay £20 and £40 respectively to tax over a three year period but under the new rules these fees will sky rocket to £1,010 and £1,030.

The tax jump is due to the new first year hybrid charge of £150 for the GS300h and the subsequent standard rate charges of £130 a year.

Under the new rules, only electric cars under £40,000 will not have to pay car tax.

Any car costing over £40,000 will also be slapped with a £310 surcharge on top of their tax rate.

This means that cars such as the Porsche Cayenne E-Hybrid, Mitsubishi Outlander PHEV and Volvo XC90 T8 and Audi Q7 E-tron will pay £1,000 more in tax over three-years.

Motorists who flocked to buy one of Britain’s top sellers in the first months of 2017 are also likely to have avoided a hefty tax premium and could still do so if they move quickly.

Six of 2017’s top 10 sellers are among the highest risers.


Certain derivatives of the Vauxhall Astra, Ford Focus, Nissan Qashqai, Mercedes C-Class, Audi A3 and BMW 3-Series will command an extra tax bill of between £400 and £1,000 over three years.

What Car? editor Steve Huntingford said: “The new tax laws are designed to increase the advantage of running a zero emissions car, but they make things much more complicated and push up the price of many ‘bread and butter’ models.

“Fortunately, there are still opportunities to get a great deal.


“Buyers still have a small window to snap up a bargain before 1 April, and there are a number of grants for plug-in hybrids at their disposal.

“Tax aside, valuable savings can be made by using the What Car? New Car Marketplace to get the best possible price.”



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