UK government starts collecting one-off tax payment on new cars

Buyers of new cars will be eligible for the government's one-off showroom tax from today.

The new tax is a one-off first-year payment on top of the usual vehicle excise duty rate, and the amount buyers pay is based on the emissions of their vehicle.

For now, it only applies to cars emitting more than 166g/km of CO2, with the scale rising from adding £70 to the cost of your car to £515.

Showroom tax costs

Band A (up to 100g/km CO2) + £0Band B (101-110g/km CO2) + £0Band C (111-120g/km CO2) + £0Band D (121-130g/km CO2) + £0Band E (131-140g/km CO2) + £0Band F (141- 150g/km CO2) + £0Band G (151 to 165g/km CO2) + £0Band H (166 to 175g/km CO2) + £70Band I (176 to 185g/km CO2) + £100Band J (186 to 200g/km CO2) + £190Band K (201 to 225g/km CO2) + £305Band L (226 to 255g/km CO2) + £325Band M (Over 255g/km CO2) + £515

Standard VED rates have also gone up for some cars as of today.

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