Motorists attaxed

I understand that the rates and timings of VED taxes have been changed in the recent pre-budget. The telegraph previously printed a very useful guide to what the rates would have been over the next three years. Would it be possible to update this to reflect the latest and future situations. I have heard rumours that there are plans to increase taxes considerably on CO2 emissions above 166 from 2012. Do you know anything about these plans?

Asked on 24 January 2009 by

Answered by Honest John
I updated my FAQ on this at www.honestjohn.co.uk in November. It's extremely confusing. And a second kick in the teeth of anyone who bought a low CO2 car. First, no exemption from Congestion Tax, a 'proposal' on the basis of which thousands of people bought low CO2 cars. Now, instead of a small VED fall for low emitters, it stays the same next year, so hundreds of thousands of people who bought on that basis are worse off. As far as motoring is concerned you cannot trust any ‘proposals’ our current legislators make and cannot buy on the basis of them. However, from 2012, the EC is to impose a CO2 cap on cars of 130g/km across each manufacturers range (with some allowance for weight) fining them up to 95 Euros by 2015 for every gram over the limit. Obviously this is going to hit luxury and sportscar makers hardest, which is why we are now hearing of hybrid and electric Porsches and hydrogen powered BMWs.
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