The Government's new 'showroom' tax comes into effect today, so anyone buying a new car will be liable for this new one-off charge. We answer your questions.
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.
When will I have to pay it from?
The new tax is payable from April 1. It's no joke, either – the new tax could add an extra £515 to your road tax bill.
The payment is based on your new car's CO2 emission and will add between £70 and £515 to your first road tax bill.
Who will pay it?
The new tax will be payable on all cars registered from April 1.
How much will I have to pay?
The table below shows how the additional tax will be charged.
'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
=Total First Year Cost