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CONFUSION OVER NEXT YEAR'S CAR TAX

Sat, 16 Aug 2008
Parker’s Guide has issued a press release contradicting the Government's own March 2008 Budget document.

It has highlighted that the DVLA is working to the letter of the Government March Budget document rather than a little known modification to next year's tax bands.

The March Budget document clearly states that for the year 2009-10, cars registered after 1-3-2001 (Y reg) and emitting 226-255g/km will be taxed at £415, and cars from Y reg emitting over 255g/km will be taxed at £440.

However, Parkers seems to have found evidence of an exemption whereby, for the year 2009-10, all cars from Y reg emitting 201g/km or more will only be taxed at £300.

According to Parkers, cars emitting 226g/km or more will not be subject to higher tax rates until March 2010.

Parkers press release is also at variance with the Government Budget Document in stating, "Cars that emit more than 186 g/km CO2, but registered between March 2001 and March 2006, will move from Band F to Band K – a rise of £90."

The March Budget document states that for 2009-10, cars from Y reg emitting 181-200g/km will be taxed at £260 and cars emitting 201-225g/km will be taxed at £300.

However, a later Budget Report dated 14-5-2008 contains a different table for cars first registered from 1-3-2001 to 22-3-2006. In this table, for 2009-2010, cars emitting 187-200g/km are to be taxed at £260 and cars emitting 201g/km + are to be taxed at £300.

For 2009-10, cars first registered after 22-3-2006 emitting 226-255g/km will be taxed at £415 and those emitting over 255g/km will be taxed at £440.

Full Clarification at www.honestjohn.co.uk/faq/faq.htm?id=20

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