In last year's Autumn Budget Chancellor of the Exchequer, Philip Hammond, announced an increase in road tax for all new diesel cars (vans and commercial vehicles were exempted). The changes are set to come in to force on the 1st April 2018 and will see each diesel car shifted up one emissions band. Petrol cars will also be affected as the charges for each band will be bumped up slightly from between 1% to 4% in line with inflation. The charge of £140 for subsequent years will not be altered for any vehicles.

Technically any diesel cars which meet the upcoming Euro 6 real-world emissions standard will be exempt from the increase, however as those tests are not set to be introduced until 2020 no vehicles will be rated before that time.

Remember, when you lease a vehicle with Leasing Options your road tax is included within your initial and monthly payment, take a look at our latest special offers. For this reason prices may increase slightly after 1st April, however if this applies to you then your account manager will give you more details.

The table below shows the increase to the first year rate payable by cars falling in to each band, for full clarification please call an account manager today.

tax rate tables