Changes to Car Tax in 2018

In April 2018, new car tax regulations were introduced and there has been an overhaul of the UK’s system for taxing cars. The Government has constantly revised and updated UK vehicle tax to reflect the buying habits of the population.

These VED changes are coming in after the previous increase only a year ago. In the 2017 Autumn budget, the cost of car tax was increased significantly for thousands of drivers. There were also strict rules for diesel cars introduced.

However, this year’s tax changes have strengthened the rules for diesel cars, in an attempt to clamp down on highly polluting cars on the road. Drivers of diesel cars that do not meet a pre-determined emissions standard will have to pay a band higher car tax than they are currently paying.

Diesel cars will have to meet the real-world driving emissions standards. This means that they can’t emit anymore than 120mg of nitrogen oxides per kilometre. However, this is 1.5X over the current limit, therefore, no new car can meet these standards. Compliance with these emissions standards is not mandatory from manufacturers until 2020. Therefore diesel owners could be paying up to £500 more a year to tax their vehicle as no new diesels conform to the RDE new real-world emissions regime against the latest Euro 6 emissions standards.

However, these changes only apply if your car is bought and registered after 2018. If you buy a second-hand car that was registered before this date, you won’t be affected by these changes. Older cars will continue to be taxed according to the old system of CO2 emissions. It is also worth noting that these new rules only apply to cars – not vans or commercial vehicles.

Below is a full breakdown of the VED tax rates from April 2018.

Car Tax Changes

Although these new car tax changes seem bleak for diesel cars, it’s not their demise yet. Click here to discover what’s next for diesel cars.


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