new diesel tax rates, which come into force as of April 2018, mean that diesel vehicles are taxed more heavily, however which vehicles as well as by exactly how much can be a matter of confusion.
Which is understandable provided the complexity of the new regulations surrounding diesel vehicle taxes – however the very first thing to understand is that for most people buying a new diesel car, any type of cost hikes will be fairly minor.
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The diesel tax boosts apply to two aspects of the UK’s vehicle taxation framework: vehicle Excise duty (VED) – commonly understood as road tax – as well as business vehicle tax, technically referred to as Benefit-in-Kind (BiK) tax.
As road tax applies to everyone, we’ll offer keeping that aspect first.
New diesel tax rules: road tax
The VED boost for diesel vehicles applies only to new vehicles bought on or after 1 April 2018. From that date the amount you pay for the very first year of road tax, as well as only the very first year, boosts by one tax band.
Unlike annual road tax, which is fixed at £140 a year for most cars, first-year VED rates are still based on carbon dioxide (CO2) emissions.
As an example, if a new diesel vehicle emits between 111 as well as 130g/km (grams per kilometre) of CO2, under the old system you would make a one-off road tax repayment of £160 for the very first year. From 1 April that exact same vehicle will expense £200 to tax instead. One example of a vehicle that emits that kind of CO2 is a Nissan Qashqai 1.6 dCi 130, so people buying the Japanese SUV after April 1st will pay £40 more for their very first year of tax than people who bought one before that date.
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