What does all this mean in the real world?
To help you out, we’ve compared the new tax on two very different cars to give you an example of how the new system works.
Firstly, let’s take the Suzuki Celerio, a 1-litre city car with low CO2 emissions of only 99g/km. Under existing rules, it is exempt from car tax. From April, it will cost you £100 in year one and £140 thereafter. That’s £1,360 if you keep the car for 10 years.
Now let’s imagine buying a Nissan 370 Z. Costing around £28,000, its 3.7-litre engine emits 248g/km of CO2. While you’ll still pay more than you would with the Celerio, you’ll pay considerably less than under existing rules.
Under current rules you’d pay £870 in year one and £490 each year afterwards. Under the new regime in April you’d pay a much larger £1700 in year one, but then only £140 each year afterwards. That means if you buy a new Nissan in April you’ll pay £2,960 car tax over 10 years as opposed to £5,280 now.