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Thursday, March 13, 2008

How much extra Vehicle Excise Duty will you pay?

People might be forgiven for thinking it is just the largest and most polluting cars that are going to face increased tax with the big boost to Vehicle Excise Duty today.  This report, from the BBC News website, suggests that Darling has raised taxes on "high-polluting" cars:

"In his first Budget Mr Darling raised taxes on high-polluting cars, alcohol and cigarettes and announced new tests for incapacity benefit claimants."

In fact, new TaxPayers' Alliance research reveals that a heavy majority of the different car models in current production will face increased taxes under the new charging structure, even compared to the 2008-09 rates:

  • 88 per cent of cars will pay more under Darling's new charging structure.
  • 2 per cent of cars will pay the same under Darling's new charging structure.
  • 9 per cent of cars will pay less under Darling's new charging structure.

The higher rate in the first year, the "showroom tax", will apply to most cars - with only a small number paying less in the first year:

  • 72 per cent of cars will pay more in the first year than in subsequent years.
  • 22 per cent of cars will pay the same in the first year as in subsequent years.
  • 6 per cent of cars will pay less in the first year than in subsequent years.

To find out how much you will have to pay for your car download our spreadsheet with details of every model in production:

Download the TaxPayers' Alliance Vehicle Excise Duty Database (XLS, 2.5MB)

Notes

  1. Fuel economy data is drawn from the official VCA Car Fuel Database.
  2. Data on the new charging structures is from table A8 in the Budget.

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Comments

Please take this to the national press. I think they have missed this completely. TV reports show more chat repence on beer.
Most dont realise if there car is over 7 years old they may be affected.

Wait till mondeo man pays £415 to retax the family car.

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