Recent research by HonestJohn.co.uk has revealed that these new tax rules will particularly affect buyers of new eco-friendly models, many of which are amongst Britain's most popular cars. At the same time, owners of some more-polluting vehicles will benefit from the legislation.
Previously, the government has enticed new car buyers to opt for eco-friendly vehicles that emit less than 99g/km of CO2, with the promise of no VED. However, now, with 74 per cent of new cars emitting less than 130g/km of CO2, ministers have made a U-turn, and introduced these new rules.
On cars registered from April 1 2017, the government will replace the current 13-band tax system with three new bands - zero, standard, premium. There will also be a surcharge for electric cars with a list price above £40,000.
This will mean that some of Britain's cleanest and most-efficient cars, emitting below 99g/km, will face significant fees. Owners of a Toyota Prius, for example, will end up paying £405 in tax over four years, while Tesla Model S buyers will receive a bill of £930.
But while buyers of new cars over £40,000 – such as the Tesla – will be forced to pay an extra £310 a year for five years, the research by the consumer motoring site revealed a gap in the tax law that allows some of the UK's highest polluting cars under this price limit to benefit. Aol News.