robert.saunders
MB Enthusiast
What are the details of the so-called "showroom tax"?
From April next year, the drivers of the most polluting cars will pay vehicle excise duty of £440.
Then from April 2010, people buying new models that are the most polluting will pay vehicle excise duty of £950 in their first year of owning the vehicle.
After that they will then pay vehicle excise duty of £455 per year.
Those buying vehicles classed as the second-most polluting, will pay £750 in the first year and £430 per year thereafter.
How do I know if my car is classed as "most polluting"?
From next year, vehicles will be put in one of six new bands.
The top band - band M - will be for those vehicles which emit more than 255g of carbon dioxide per kilometre (CO2/km) driven.
The second-highest band - Band L - is for cars emitting between 226g and 255g of CO2/km.
How does this compare with the situation now?
Currently, cars emitting more than 225g of CO2/km pay £400 a year in vehicle excise duty - though there is no one-off higher first year charge.
Is it only the most polluting cars which face the showroom tax?
No. All cars classed in the current bands E and F - which produce between 166g and 226g of CO2/km will also have to pay a higher rate in the first year.
This will range from £250 to £550 in the first year and from £180 to £310 thereafter, depending on the extent of CO2 emissions.
What if I have a relatively "clean" car?
In 2009-10, the standard rate of vehicle excise duty will be cut for all new and existing cars which emit less than 150g of CO2/km
From 2010-11 the owners of cars emitting less than 130g CO2/km will pay no vehicle excise duty.
Cars fuelled on alternative fuels, such as bio fuels, will get a tax discount of between £15 and £20 in 2009-10 and £10
Why are the changes coming into play?
The government says that motorists should be helped to see that a "cleaner" car is good for their bank balance as well as the environment.
A report published alongside the Budget by Professor Julia King calls for the lifetime costs of running a car to be prominently displayed in the showroom.
It also recommends a colour-coded road tax disc dependent on emissions levels.
Is it all been done for the good of the environment?
There is a financial implication.
Changes to Vehicle Excise Duty, extracting more from owners of gas-guzzlers, is forecast to raise £465m in 2009-10 and £735m in 2010-11.
http://news.bbc.co.uk/1/hi/business/7292110.stm
From April next year, the drivers of the most polluting cars will pay vehicle excise duty of £440.
Then from April 2010, people buying new models that are the most polluting will pay vehicle excise duty of £950 in their first year of owning the vehicle.
After that they will then pay vehicle excise duty of £455 per year.
Those buying vehicles classed as the second-most polluting, will pay £750 in the first year and £430 per year thereafter.
How do I know if my car is classed as "most polluting"?
From next year, vehicles will be put in one of six new bands.
The top band - band M - will be for those vehicles which emit more than 255g of carbon dioxide per kilometre (CO2/km) driven.
The second-highest band - Band L - is for cars emitting between 226g and 255g of CO2/km.
How does this compare with the situation now?
Currently, cars emitting more than 225g of CO2/km pay £400 a year in vehicle excise duty - though there is no one-off higher first year charge.
Is it only the most polluting cars which face the showroom tax?
No. All cars classed in the current bands E and F - which produce between 166g and 226g of CO2/km will also have to pay a higher rate in the first year.
This will range from £250 to £550 in the first year and from £180 to £310 thereafter, depending on the extent of CO2 emissions.
What if I have a relatively "clean" car?
In 2009-10, the standard rate of vehicle excise duty will be cut for all new and existing cars which emit less than 150g of CO2/km
From 2010-11 the owners of cars emitting less than 130g CO2/km will pay no vehicle excise duty.
Cars fuelled on alternative fuels, such as bio fuels, will get a tax discount of between £15 and £20 in 2009-10 and £10
Why are the changes coming into play?
The government says that motorists should be helped to see that a "cleaner" car is good for their bank balance as well as the environment.
A report published alongside the Budget by Professor Julia King calls for the lifetime costs of running a car to be prominently displayed in the showroom.
It also recommends a colour-coded road tax disc dependent on emissions levels.
Is it all been done for the good of the environment?
There is a financial implication.
Changes to Vehicle Excise Duty, extracting more from owners of gas-guzzlers, is forecast to raise £465m in 2009-10 and £735m in 2010-11.
http://news.bbc.co.uk/1/hi/business/7292110.stm
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