Nicked from t' budget;
-------------------- Analysis from the King Review suggests that there is a wide range of environmental performance within a particular group of cars (such as family saloons or hatchbacks). Drivers could reduce carbon dioxide emissions and fuel bills by up to 25 per cent by choosing the most efficient vehicle in its group. The review also concluded that over the long-term the technology exists to reduce the average carbon dioxide emission of new cars to 100g per km by 2020.
In order to support this target, and strengthen the environmental incentive to develop and purchase fuel-efficient cars, Budget 2008 announces reform of the vehicle excise duty (VED) structure. From
2009, VED will be restructured with new bands, based on carbon dioxide so that people gain financially by choosing the car with the best environmental performance in a given group. The financial difference between the most and least polluting cars will increase, so that making a small change in car emissions has a greater financial impact. From 2010, there will be a new higher first-year rate based on carbon dioxide emissions, to influence purchasing choices. Specific changes include:- six new VED bands from 2009-10 - including a new top band (band M) for the most polluting cars that emit more than 255g CO2 per km;
- reducing the standard rate of VED, in 2009-10, for all new and existing cars that emit 150g of CO2 per km or less, and increasing the standard rate of VED on the most polluting cars to 425 pounds;
- from 2010-11, extending the zero rate of VED, during the first year of ownership, to all new cars that emit 130g CO2 per km or less - the EU proposed target for average new car emissions in 2012;
- holding the first-year rate for all new cars that emit between 131 and 160g CO2 per km equal to the standard rate in 2010-11;
- introducing for the most polluting cars a first-year rate of 950 pounds in 2010-11; and
- providing a 15 pounds or 20 pounds discount for alternatively fuelled cars in 2009-10, and 10 in 2010-11; and aligning the alternative fuel and standard rates of VED in 2011.
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So much for the reports of a 2,000 quid tax rate on "gas-guzzling 4x4s"!