New Diesel cars penalised again in tax changes

Posted on April 17th, 2018 by Rob Marshall

New Diesel cars penalised again in tax changes

Car tax rates changed again at the beginning of April – here is what you need to know.

Firstly, the changes apply only to new cars; here is a link to the changes announced in April 2017.

New diesels will be hit hard, because their tax rate increases by one band. Interestingly, company car tax for new diesel cars increases by 1% to 4% as well. It also provides HM Treasury the chance to increase the tax take from road tax, the average per-car rate of which has declined as manufacturers and customers have prioritised CO2 emissions over the last 20 years.

The following tax bands compare the first year 2018 rate for NEW DIESEL CARS and not vans, which retail for under £40,000, compared to those of last year.

1 – 50 g/km CO2

2017: £10

FROM 2018: £25

 

51 – 75 g/km CO2

2017: £25

FROM 2018: £105

 

76 – 90 g/km CO2

2017: £100

FROM 2018: £125

 

91 – 100 g/km CO2

2017: £120

FROM 2018: £145

 

101 – 110 g/km CO2

2017: £140

FROM 2018: £165

 

111 – 130 g/km CO2

2017: £160

FROM 2018: £205

 

131 – 150 g/km CO2

2017: £200

FROM 2018: £515

 

151 – 170 g/km CO2

2017: £500

FROM 2018: £830

 

171 – 190 g/km CO2

2017: £800

FROM 2018: £1,240

 

191 – 225 g/km CO2

2017: £1,200

FROM 2018: £1,760

 

226 – 255 g/km CO2

2017: £1,700

FROM 2018: £2,070

 

Over 255 g/km CO2

2017: £2,000

FROM 2018: £2,070

After the first year, the tax rate drops to the standard £140.00 (correct at time of writing).