Help to reduce road tax

Published Date: 6th Apr 2010

With new car tax laws coming into force last week, UK Car Discount can still offer some ray of light for new car buyers

UK Car Discount can help motorists avoid the new higher road tax that is being imposed on higher emission cars by offering a range of more economical and greener cars.

The owners of more than six million vehicles already on the road also face tax rises of more than twice the rate of inflation. The Vehicle Excise Duty rates, which were first announced in 2008 but come into force from the start of April are designed to reflect car engine emissions. The Vehicle Excise Duty rates have been altered to reflect the emissions from car engines with a view of making us all greener.

A total of 13 emission 'bands’ have been introduced, with the owners of the highest polluting vehicles paying the most in road tax. In additional there is a one-off 'showroom tax’ will also apply to anyone who wants to buy a new car in one of the most polluting bands. Cars in nine of the 13 bands will incur this tax.

The increases were announced back in 2008 but took effect from the 1st of April. Many motoring groups are saying the taxes are an unfair penalty on drivers and they are being taxed already through price rises at the fuel pumps.

Under the scheme, new cars with the largest emissions will incur a levy of £950 in their first year when the showroom tax and higher road tax bills are combined. That is currently more than twice the rate levied on the biggest polluters on the road already. On the plus side for people considering buying a new car, ranges of smaller cars with low emissions will face no tax in their first year.

The Treasury said the new tax regime would “send a stronger signal to the buyer about the environmental implications of their car purchase”.

But critics said the measures are simply another revenue-raising measure imposed on motorists already hurt by high fuel prices.

The top rate of showroom tax is targeted at high-emitting “supercars”, for example every new car built by Aston Martin, Bentley and Rolls-Royce will face a £950 tax, as will most new Jaguars. So will some Range Rovers and the Vauxhall Insignia 2.8. At the other end of the scale, new cars with low emissions, including the Audi A3 1.6 TDI and the BMW 316d will pay no road tax in the first year.

According the AA, around 1.44 million cars last year were sold which would be hit by the new showroom tax this year.

As well as the new showroom tax, taxes on cars already on the road will also be increased to penalise those with the highest emissions. Low-emission vehicles will be cheaper to tax.

Society of Motor Manufacturers and Traders (SMMT) data suggests that over 6 million car owners will see the tax on their cars go up by well above the rate of inflation.

Any car registered since 2001 that falls into Band I or above will incur a higher tax this year.

The Band I tax rate will rise from £175 to £200, a rise of 14 per cent.

Cars falling into that band include the Land Rover Freelander 2.2 diesel, the Toyota Avensis Estate 2.2 and Vauxhall Astra CC.

Band J cars, which include the Nissan Qashqai 2.0 diesel, the Honda CR-V 2.0 petrol and the Vauxhall Corsa 1.6, will incur tax of £235, up from £200.

Gary Bennett, MD of UK Car Discount, the country’s leading online new car dealership, said “It appears that people with higher performance, and therefore generally higher emitting cars are being hit twice – by road tax and at the petrol pumps. It’s not all bad news though, with new lower emission cars becoming exempt on tax, there are some real savings customers can reap”.

To see a wide range of low emission cars, visit and use their search function to find a low-emitting new car with big savings.

About UK Car Discount

UK Car Discount has been trading online since 2003 and has sold over £55M worth of vehicles. They are based in offices near Manchester Airport and sell only UK dealer supplied vehicles and have the full manufacturers UK warranty and standard breakdown package. To find out more about UK Car discount, visit

For further information, please call UK Car Discount on 0845 170 7770