Tens of thousands of families face higher motoring costs after a Government decision to include cars up to seven years old. Oh no, here we go again.
The Treasury is abolishing the exemption for older cars from the highest rates of excise duty. This means that owners of larger cars bought since 2001 will find that their road tax will rise steeply from next April.
The increases are being introduced in two stages, with owners of cars emitting more than 225g/km who are now paying £210 a year being charged £300 in 2009 and up to £455 in 2010. Owners of medium-sized cars that emit more than 180g/km will find taxes rising by up to £100. In both cases, family cars such as MPV’s and large saloons will be affected.
The Band G rate for cars emitting more than 225g/km was not introduced until 2006. As Chancellor, Gordon Brown said in that year’s Budget that no car registered before March 23, 2006 would have to pay the band G rate.
In last month’s Budget, Alistair Darling announced a new system of 13 tax bands, from A to M, coming into force next April and a showroom tax of £950 starting in April 2010.
This will raise £1.2 billion, but it was not made clear at the time that a significant proportion will come from older cars losing their exemption.
Talk about pulling the wool over our eyes
FemaleFirst - Jackie Violet