Eco Friendly Car Tax

In its determination to reduce carbon emissions and make the UK one of the leading countries in the quest to reduce carbon footprints, the government has introduced an eco friendly car tax scheme that rewards car owners with environmentally friendly cars and punishes quite severely those who own the bog so called gas guzzlers.

The amount of road tax you need to pay is now determined by the amount of carbon dioxide (CO2) your car emits as a function of the distance travelled. The units of measurement are grams per kilometre (g/km).

These tax rates apply only to cars that were registered after 1st March 2001; cars registered before that date are taxed according to engine size and cars with engine capacities over 1549 pay tax at a higher rate.

For cars registered after 1st March 2001 there is no road tax to pay if the car emits up to 100g/km CO2, which means that electric cars are completely exempt from tax. Tax is also heavily discounted for cars that emit only small quantities of CO2, for instance at current rates for up to 110 g/km the tax is £20 pa and for up to 120 g/km the rate is £30 pa.

After then however rates start to increase quite sharply with the rate for cars that emit 201 to 225 g/km being £260 pa.

However, if your vehicle emits 226 g/km or more, then the tax rates are punitive. For 226 to 255 g/km you will have to pay £445 pa and for over 255 £460 pa.

If you purchase a new car with high emissions, then your first year tax will be substantially higher, in fact up to £1,000 for the first year for cars that emit only 255 g/km.

The moral is simple: if you are thinking of buying a new car you can save a considerable amount of money by selecting one with low CO2 emissions. You could also save by researching insurance quotes when you get a new car, rather than sticking with the same company you’ve always used. Go to endsleigh.co.uk for current offers.