Vehicle Excise Duty (Car Tax)
Car tax is expected to rise in 1st April in the United Kingdom which marks the third increase in vehicle excise duty in the past three years. It was announced at the beginning of the year 2019 in the autumn budget of 2018. The excise duty is expected to rise by about £65. This rise in tax is smaller to most drivers operating on the roads which will raise their annual cost by £5 and this is affordable to most drivers. On the other hand, motorists will experience an annual increase in the cost of £15. The document reads that rates of cars, vans, and motorcycle will increase in line with RPI.
Motorists with worst Vehicles which produce a high level of CO2 which pollutes the environment will suffer the high-cost increase. This rise in vehicle tax comes again as the third experienced in the past three years after a rise in cost in 2017 and 2018; the rise of diesel car cost was expired in 2018. This was to act against those people who wanted to buy vehicles which use diesel type of fuel due to the introduction of new real World Driving Emissions standard. The cars which could not reach the standard could pay more tax.
Vehicles Registered between 1st March 2001 and 1st March 2017
The vehicles which were registered between 1st March 2001 and 1st March 2017 will pay up to £15 extra annual car tax. The cars which were registered between the year 2017 up to the present will face paying up to £65 extra annual cost. Besides the rise in excise duty in line with the inflation as stated by treasury spokesman, the motorists across the country will benefit from fuel freeze enabling them to save an average of £1000 since 2011. The tax rates applied to vehicles which lost over £40,000, chargeable from the second year for five years will also hike.
The premium tax rate of such vehicles will rise from £310 to £320 annually and the standard rate kept in place in 2017 when the system was hauled also increases by £5 each. It will also increase from £140 to £145 for diesel and petrol models and from £130 to £135 for hybrid models. To check how much you need to pay then you need to use the tool on the Vehicle Certification Agency website. As a driver, you can be fined a minimum of £80 for failing to have a valid car tax which can rise if caught by police or presented in the court.