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What Car? Q&A - Are 4x4s to be taxed heavily?

18 January 2007
Q: A friend has told me that the Government is going to dramatically raise the amount of road tax on 4x4s. Is there any truth in this?
David Brown


Increases in road tax are targeting the most polluting cars, so it's likely that 4x4s will fall prey to these in future. The £215 band for vehicle excise duty introduced in the last budget will affect many 4x4 vehicles.

The Chancellor's latest pre-budget report includes a rise in fuel duty of 1.25p per litre. This is the first rise in three years, and will hit thirstier cars hardest.

There are also plans to raise the London congestion charge from £8 to £25 for cars in the tax band G, which is the most polluting of the seven groups and covers many 4x4s.

Furthermore, London 4x4 drivers could soon suffer from a rise in parking charges. In October, Richmond borough council announced that it was considering linking the cost of a parking permit to the emissions of the vehicle. Band G vehicles, which emit 225g/km of carbon dioxide or more, could face an annual parking fine of £300, a three-fold increase on the current charge.

Two-car households are set to face even more charges, as the council also proposed a 50% levy on the standing parking charge for a second vehicle. This means that an owner of two cars in tax Band G could potentially face an annual parking bill of £750.

Lambeth council is also proposing similar parking charges which are linked to vehicle emissions.

It's worth bearing in mind that all of these taxes and charges don’t' discriminate on the type of vehicle, so if you've got a sports car or an MPV with high emissions, for instance, you'll also be hit.