Small car buyers face higher costs

The way we pay road tax will change significantly from 1 April and it is something to consider if you're going to be buying a new car.

Crucially, it is those buying cars with low CO2 emissions that face the highest relative rise in the tax.

Currently many such vehicles don't incur the charges, known formally as Vehicle Excise Duty (VED).

But for cars registered on or after 1 April 2017 there will be a first year of charges linked to carbon emissions.

After that there will be three bands - zero, standard and premium - determining how much you will pay as a car owner each year.

Importantly, if you have a car already, these rule changes do not apply and you will continue to pay VED under the existing rates...

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