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Diesel Car Tax Changes for 2018

New VED rates for diesel cars - Here is what you need to know

The government’s ongoing push to penalise diesel continues next month when car tax for diesel-powered cars rises. However, there’s a lot of confusion amongst drivers who are fearful that their motoring bills are to rise, with research from Confused.com showing that almost nine out of 10 drivers don't understand the forthcoming changes. Don’t panic just yet, as the changes are only going to affect new cars registered from April.

All new cars registered from April that don’t meet newly introduced ‘RDE2’ emissions targets (and, currently, not one car does) will see their tax band bumped up one level. Whilst this means that many new car buyers will be faced with just a £20 rise, others will be charged an extra £500 - but only for the first year. After 12 months the tax rates revert to normal, which means £140 a year for most cars, or £450 for those costing over £40,000.

However, as the changes only affect new cars, any rises will be hidden away in the ‘On The Road’ price that manufacturers must provide. This includes the first year’s tax, number plates, delivery and other charges.

BandCO2CurrentNewRiseOngoing*
D76-90

£100

£120
£20
£140
E91-100
£120£140
£20
£140
F101-110
£140
£160£20
£140
G111-130
£160£200£40£140
H131-150
£200£500£300£140
I151-170
£500£800£300
£140
J171-190
£800£1,200£400£140
K191-225
£1,200£1,700£500£140
L226-255
£1,700£2,000£300
£140
M256+ 
 £2,000 
£2,000 
£0 
£140

Don’t think there’ll be any escape by choosing a particularly low emission diesel car. Even the Peugeot 208 BlueHDI 75, the country’s cleanest diesel car, faces a rise in its first year car tax from £100 to £120.* Cars costing more than £40,000 are taxed at a rate of £450 for five years, before dropping down to £140.

Oddly, the most polluting cars will fare better than some slightly cleaner cars. Anything emitting over 225g/km of CO2, such as some Mitsubishi Shogun and Jeep Wrangler models, will see the tax burden rise from £1,700 to £2,000 in the first year.

 Diesel Car Tax Changes for 2018 Image 1

The biggest rise is for the next rung down the ladder, those cars with CO2 emissions of between 191 and 225g/km. They’ll be hit with a £500 rise for the first year. While a number of luxury cars are included in the rise, sensible family cars are caught up in the changes as well.

ModelPriceC02 g/kmNew First Year TaxOngoing*
Mercedes-Benz GLE 350d AMG
£59,820 
192£1,700
£450
Hyundai i800 2.5 CRDi SE
£26,095 
197£1,700
£140
Mercedes-Benz GLS 350d AMG
£72,530 
199£1,700
£450
SsangYong Turismo 2.2 ELX
£26,245 
205£1,700
£140
SsangYong Rexton 2.2 EX
£27,995 
208£1,700
£140
Bentley Bentayga 4.0 V8 SUV
£137,055 
210£1,700
£450
Range Rover SDV8 Vogue
£86,700 
219£1,700
£450
Range Rover Sport SDV8 Autobiography
£89,950 
219£1,700
£450

* Cars costing more than £40,000 are taxed at a rate of £450 for five years, before dropping down to £140.

There may not be much sympathy for a Bentley driver facing a tax bill that’s gone up by £500, but budget conscious family buyers will be disappointed to see the likes of the seven-seater SsangYong Turismo and eight-seater Hyundai i800 appearing on the list.

No matter how big the first year rise, buyers will see the tax return to the standard rate for the second year and beyond. That rate remains at £140 for most cars but rises to £450 for five years if the car’s list price is higher than £40,000.

There’s no way of avoiding the tax hike on a new diesel car, and the only way of avoiding car tax at all is to choose a sub-£40,000 electric car. Even a Tesla attracts car tax, thanks to its high list price, but the Renault Zoe and Nissan Leaf remain tax free.

Electric Cars With the Longest Range in 2018 

I drive a 2011 BMW 520D. The annual tax is currently £30 per year. Where is my incentive to trade this in for a "cleaner" new car?

There isn't and you shouldn't, scrapping cars is not necessarily the most green thing you can do - think of the energy CO2 generated in producing a new car. Unfortunately this is a political issue- The real problem is the design of cities and towns that are very badly designed. A simple trip into London will shown the problem : +Tall building causing canyons of pollution +Public transport (can't blame private cars for Oxford street) +Over population +Wood burning stoves (in a city really). +Roads designed to slow and force cars to stop and start in preference for cyclists (not anti cyclists but really forcing cars to slow/idle for cyclists is just stupid ). +Lack of parking or silly parking restriction that forces cars to re-park + Idiotic mayors.....

You're absolutely right Brianm101, particularly on the cyclist issue - just take a look at Lower Thames St in London. The lack of infrastructure to support and encourage increasing use of electric vehicles is a big issue. I expect I will keep my current car for another 10 years by which time I hope that the prices of electric vehicles will not be as "rip off" as they currently are and also hopefully the infrastructure for them will have improved.

Steve Clarke has knocked the nail on the head, I have stopped looking at new cars now.

+...unnecessary "pinch" points and pollution humps. Sorry, speed reduction humps. + Extended 20mph zones forcing drivers to crawl around in 2nd gear instead of 4th gear at 30mph. + Unplanned traffic light phasing. + Bus lanes where there are seemingly no buses. + 2 lane roads reduced to one and a half lane roads to create a cycle lane that cyclists refuse to use because the heavier vehicles don't break up the glass and other debris in the gutter any more. Agree wholeheartedly, Brianm101. Especially with your last point. By the way, although the latest buses in London are hybrids, they still have diesel engines. Are they to be taxed similarly?

I have to take issue with the wood burning stoves point. The only problem with these is that most people think you can chuck any old wood on them and they will function. Most of the time people buy cheap wood that is cheap because its still green and needs to be seasoned. Most people dont have the space to keep buying green wood and then store it till its dry enough to burn so it goes straight on and smokes. Dry wood in a DEFRA approved stove doesnt smoke.

Paul - Yesyou are correct DEFRA approved with dry wood is a lot better, but even then it still outputs some pollutants especially when starting up. As you say most people don't use properly dried wood. For that you pay a fortune or need plenty of space to let it dry for 2 years+ . Do have a wood burner, but way out in the country and miles away from anyone else and even with dry wood there is still smoke when it first starts up. So the procedure is check wind is blowing, close all doors and windows which is ok, as its usually used in the Winter and saves burning oil!

In a service-based economy,such as Britain's is today,It's just the government seeking to maintain it's status quo.As we don't manufacture as much as we used to, and the manufacturing capacity shrinks,the government of the day,of whatever political hue,must find it's income from whatever sources there are available to it,hence the annual tax rises.The personal taxation was first introduced to finance the South African wars in the 1800's-we must've paid for that by now surely?

You got it about right,there,friend.if we can see it,why can't they?-Or,if they do,why do they turn a blind eye to it.

On second thoughts,The biggest polluter as far as London is concerned,would be Heathrow,Located to the West of the City,and ,as the prevailing winds blow from the Southwest,all the aircraft exhaust fumes blow directly across the Metropolis.That's why people move away.

Wonder how much CO2 a cyclist doing 25 MPH in a 20 zone emits? But seriously the cyclist will create particulates from the dust on the road due to the tyres chucking it up. Nothing is totally squeaky clean

Well how about The prime minister and all the government ministers get rid of there jaguars cars and get electric cars

The issue of CO2 is still ever present and was the driver behind diesel in the first place. Now the incentive is for gasoline and it's relatively high CO2 emissions. Electric cars are hindered by battery technology stagnation, and push the emissions back to generation. Renewables are not capable of coping with electric car demand. Politicians need to attack the root cause of global warming and tax uncontrolled population growth. A "Child Tax". Not "Child Benefit'. The day is coming were the planet cannot support human over population. It can't support middle class western brat methane producers now.

Yes. Lead by example. Why not champion both and drive the new all electric Jaguar i-Pace!

Ooooh.. who wrote this comment? Was it a Corbyn disciple.

Not a "child tax" but certainly remove child benefit. Do not bring children into this world unless you can raise them without recourse to the state.

I wonder how many extra bureaucrats they need to employ to deal with these ridiculously complicated taxes. Global warming is a scam governments are just using to keep us in fear and to milk as much money out of us as they can. Although I believe the latest buzz phrase is 'climate change'. In the 60s it was going to be the next 'ice age'. In the 80s it was 'the hole in the ozone layer'. I wonder what the scare will be in 20 years time.

royals might like to follow suit as well?

expect they brake wind occasionally as well.

No just give(no let them buy one) a Bike and get on the dammed thing as far away as possible