In an attempt to encourage car owners to select cars which emit less carbon, the UK government has introduced a new green car tax (Vehicle Excise Duty) scheme which effectively penalises those owning cars which produce high levels of carbon emissions. Drivers in the UK are already effectively paying the green car tax but new rates and a larger number of tax bands will come into effect from 2009.
As well as increasing the annual tax payment for many car owners, the green car tax will also include a new showroom tax from 2010. This is the green car tax for brand new vehicles for the year in which they are purchased, and is often much higher than the standard tax payable on that car. The amount reduces back to the original tax band following the first year. Cars registered before the 1st March 2001 are taxed differently with tax based on engine size rather than the green car tax bands.
When buying a car you can check which green car tax band the vehicle will fall into by checking the Vehicle Certification Agency Car Fuel Data website.
The current tax bands from the 13th March 2008 can be viewed at the DirectGov website.
The table below gives details of the green car tax payable in future years based on carbon emissions.
*These cars were the UK's five most popular in 2007, according to the Society of Motor Manufacturers and Traders.
