New Car Tax Rates

Buying a new car and that too the one that suits your personality is completely in your hands, but paying the taxes for that new car that you just bought is not. As a matter of fact buying a new car even in this time of down time might just get a bit expensive with the reformed vehicle tax. The new tax rates will completely depend upon the amount of CO2 emission on your car. The government has split the percentage of CO2 emission in 13 bands and the owners will have to pay the car tax depending on which band their car comes under i.e., the amount of CO2 your vehicle emits. As this new law goes for all car owners, people who are planning to buy a new car will have to pay New Car Tax Rates which are a little extra as compared to others for the first year.

From April 2010 there will be different Vehicle Tax rates for new cars when they are first registered. These are known as ‘first-year rates’. This means that anyone who buys a new car post April 2010 will have to pay a different rate of vehicle tax for the first tax disc. This will be reduced to standard rates of vehicle tax as soon as your vehicle enters in its second year.

In addition the government has also revised the standard rates of vehicle tax which unfortunately is significantly high as compared to the previous rates. By introducing these New Car Tax Rates, the government aims at sending across a strong signal to the buyers about the environmental implications that the CO2 emitted from these cars have on the nature and human health.

This is also a way of encouraging people to buy Green Cars, that runs on electricity and have no harmful effect on the environment. One of the major reasons that stop people from buying these cars is their high cost, but with New Car Tax Rates the government has warned people that even driving or buying a petrol/diesel car won’t be easy on your pocket.