New car tax rules to be introduced this week

New car tax rules to be introduced this weekend could see bills rise by thousands of pounds.

Cars bought after Saturday 1 April 2017 will pay a one-off tax charge for the first year. The amount varies depending on the CO2 emissions of the vehicle, ranging between £0 for electric cars, and £2,000 for high emissions cars.

From year two, drivers will be charged a flat fee of £140 a year, or £0 for an electric car.

Cars worth more than £40,000 will also pay an annual supplement of £310 for five years, starting from year two.

Cars bought and registered before 1 April will not see any changes to their tax bill, even after renewal.

You can find out how much you could pay here.

In 2015, the former Chancellor George Osborne said he would shake-up Vehicle Excise Duty charges to reflect that most new cars have such low emissions that they end up paying no tax.

James Hind, founder of carwow, said: “Some models will cost significantly more to tax each year, so there are long-term savings to be had by buying before the new system kicks in.

“Hybrid cars and small petrol-powered city cars will be cheaper to tax if you buy before April 1.”