What will April’s car tax changes mean for customers buying new cars?
From April this year, a revision of vehicle tax bands will come into force, which will affect the amount of Vehicle Excise Duty (VED) payable on all new cars.
For anyone considering buying a new car in the near future, it’s worth exploring whether the changes are likely to work in your favour, or whether it would be more advantageous to buy before the 1st April.
With the new system, all new cars will see a substantial increase in tax during the first year of registration, followed by a flat rate of £140 per year. For alternatively-fuelled cars such as hybrids, the amount is reduced by £10 in the first year and will be £130 for subsequent years.
Comparing the tax you’re likely to pay before and after April, depends largely on the type of vehicle you’re planning to buy and its CO2 emissions. As a general rule, smaller more economical cars will see the biggest increase in tax. A five-year £310 supplement is also to be introduced for cars costing more than £40,000, which will have an impact on purchases at the higher end of the scale.
If you’re considering purchasing a new vehicle, whether for business or personal use, do get in touch soon to discuss your requirements, so that we can recommend the best time to buy. You may need to get your skates on!