The start of April 2024 will bring significant changes to the UK’s car tax system, affecting both petrol and diesel vehicle owners.

The new Vehicle Excise Duty (VED) rates, which apply from April 1, 2024, introduce higher first-year tax rates for vehicles with higher emissions, specifically those emitting more than 255 g/km of CO2.

Car Tax Rate Rise

These vehicles will now see an increase in tax, with first-year rates rising by £140, culminating in a total bill of £2,745.

This reform is part of the UK government’s broader strategy to encourage the use of more environmentally friendly vehicles and reduce carbon emissions.

The standard rate, applicable after the first year, has also seen adjustments.

From April 2023 onwards, petrol and diesel cars are subject to a £180 standard rate, while hybrids and other alternative fuel vehicles benefit from a slightly reduced rate of £170.

Greener Targets Pushing Zero Emission Vehicles

Moreover, the tax system continues to incentivise the adoption of zero-emission vehicles, with these cars remaining exempt from the first-year road tax.

This exemption aligns with the government’s commitment to a greener future and its targets for reducing vehicular pollution.

These changes in car tax rates are part of the government’s ongoing effort to modernise the road tax system and make it more reflective of a vehicle’s environmental impact.

The new rates are expected to influence car buying choices in the UK, steering consumers towards lower-emission models.

The government hopes that these measures will not only lead to a reduction in overall emissions but also catalyse innovation and growth in the eco-friendly vehicle sector.

Understand How Car Tax Rate Rise Will Impact You

Vehicle owners are advised to familiarise themselves with the new tax rates and consider them when purchasing new vehicles.

The government’s website provides comprehensive information and tools to check the tax rates for new and unregistered cars.

In conclusion, the changes to the car tax rates are a step towards a more sustainable future, encouraging the use of greener vehicles while aligning with the UK’s environmental objectives.

Vehicle owners need to stay informed about these changes to make educated decisions about their vehicle purchases and usage.