Buy now to beat new 'showroom' tax

  • New tax rates from April 1
  • First-year charges of up to £515
  • More to come in the budget?
Sign the deal now and save cash on your new car
Sign the deal now and save cash on your new car
Save cash by purchasing your new car now, and beat the 'showroom' tax that's coming next month.

From April 1, the new tax could add an extra £515 to your road tax bill. So, if you act quickly and buy a new car from stock you could get your vehicle before the 'showroom' tax is launched.

What is the so-called 'showroom' tax?
The new tax is a one-off first-year payment on top of the usual vehicle excise duty rate. The payment is based on your new car's CO2 emission and will add between £70 and £515 to your first road tax bill.

The table below shows how the additional charges will be charged.

Who will pay it?
The new tax will be payable on all cars registered from April 1.


'Showroom' tax rates


VED Rates in 2010-11
Band A (up to 100g/km CO2) no fee
Band B (101-110g/km CO2) £20
Band C (111-120g/km CO2) £30
Band D (121-130g/km CO2) £90
Band E (131-140g/km CO2) £110
Band F (141- 150g/km CO2) £125
Band G (151 to 165g/km CO2) £155
Band H (166 to 175g/km CO2) £180
Band I (176 to 185g/km CO2) £200
Band J (186 to 200g/km CO2) £235
Band K (201 to 225g/km CO2) £245
Band L (226 to 255g/km CO2) £425
Band M (Over 255g/km CO2) £435
+ First Year Rate
+ £0
+ £0
+ £0
+ £0
+ £0
+ £0
+ £0
+£70
+£100
+£190
+£305
+325
+£515
=Total First Year Cost
£0
£20
£30
£90
£110
£125
£155
£250
£300
£425
£550
£750
£950


Budget date announced
Gordon Brown has confirmed that the budget – in which future increases in VED and fuel tax could well be announced – will be on March 24.

Budget live on whatcar.com
We will be covering the budget live on whatcar.com, so remember to log on and give us your views as the news comes through.

Political commentators predict that the general election will be held on May 6. You can read about the transport manifestos of the four parties, and comment on them, by clicking here.

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