Increase tax on vehicles since 2001

Government plans to backdate the increase in tax from cars as old as 2001 models, will cost 2 million people more in their motoring finances.

To complement the proposed increase in tax is the fuel duty increase in September, which depsite protests, the Government has showed no signs of abolishing.

According to Government officials, the new tax plan will reduce CO2 emmissions by 1.3 million tonnes by 2020, as it will encourage people to buy lower emission vehicles and use them less regulary.

Band F vehicles would see a drastic rise.

This includes vehicles such as the Renault Espace and VW Passat, perfect for families, for which tax will increase from around £210, to £430, and extending to £455 in 2010.

The problem is that when the older vehicles fall into the higher brackets, people don’t understand why they are being taxed on the basis of that higher bracket.

The fact is that three times as many people are buying a second hand car as are buying new cars, so they also need to take into account the economy of the vehicle and now, the potential tax savings.