With a big shake-up of the existing car tax system now imminent, award-winning Peugeot dealer Arthurs of Wrexham is strongly advising anyone considering changing their car to the new 17 plate to do so in March.
For from April 1 under changes to the tax system set in motion by former Chancellor of the Exchequer George Osborne when he was head of the Treasury, new regulations will mean that all new cars will face a significant increase in their tax demands during their first year of registration and from the second year onwards a flat rate of £140 p/a will apply.
Gareth Hughes, General Sales Manager of Arthurs Peugeot Wrexham, said today: “We are earnestly advising customers thinking to change their car to the new plate to do so before April 1. This is the only way of avoiding the revision of the vehicle tax bands which will affect anyone buying a new car from April 2017 onwards.
“Under the shake-up fewer cars will be exempt from the new vehicle excise duty rules. Unlike the current system where low emission petrol and diesel cars are tax exempt, the new system will only be free for vehicles with no tailpipe emissions which means electric and hydrogen cars only.
“Buyers of smaller, more economical cars will face the biggest tax hike – in some cases, more than nine times what they are paying now.
“Owners of higher polluting cars will still pay more under the new laws but, in many cases, not as much more as people buying lower powered cars. It’s important to emphasise that these tax changes do not apply retrospectively so only new cars bought after April 2017 will be taxed under the new system.”
Added Gareth: “Owners of a Peugeot 208 1.2 Pure Tech currently pay £20 a year. After April they would rise to £140. Potential buyers will see bills increase nine-fold over three years. Tax-wise, it will be cheaper to buy a new Peugeot 208 before the vehicle road tax changes – which means in March.”