New rules for road tax, or as it is officially called, Vehicle Excise Duty, are due to be introduced for new cars taxed from April 2017. The only vehicles exempt from tax will be electric and hydrogen cars.
The current system of cars with CO2 emissions of less than 100g/km being exempt from taxation has meant a loss of revenue for the government. The new system will mean that any new cars registered will pay a one-off tax charge for the first year.
The CO2-based tax band system has been revised, and many will pay double their current rate. From the second year, the majority of cars will pay a flat rate of £140 with only zero emission cars being exempt.
However, cars with a value in excess of £40,000 will be liable for the £140 flat rate, and also pay an annual supplement of £310 for the first five years. Current road tax bands will still apply to those cars already registered.
Statistics come from the UK Government, Vehicle Tax VED.