New diesel car tax rules: April 2018 changes explained

New diesel car tax rules: April 2018 changes explained

Confused about the new diesel tax increases? Read on for a clear and comprehensive explanation

New diesel tax rates, which come into force as of April 2018, mean that diesel cars are taxed more heavily, but which cars and by how much can be a matter of confusion.

Which is understandable given the complexity of the new legislation surrounding diesel car taxes – but the first thing to know is that for most people buying a new diesel car, any price hikes will be relatively minor.

New diesel tax rules: road tax

The VED increase for diesel cars applies only to new carspurchased on or after 1 April 2018. From that date the amount you pay for the first year of road tax, and only the first year, increases by one tax band.

Unlike annual road tax, which is fixed at £140 a year for most cars, first-year VED rates are still based on carbon dioxide (CO2) emissions.

As an example, if a new diesel car emits between 111 and 130g/km (grams per kilometre) of CO2, under the old system you would make a one-off road tax payment of £160 for the first year. From 1 April that same car will cost £200 to tax instead. One example of a car that emits that sort of CO2 is a Nissan Qashqai 1.6 dCi 130, so people buying the Japanese SUV after April 1st will pay £40 more for their first year of tax than people who bought one before that date.