Tax hike shock for car owners - News in brief - Evening Standard
       

Tax hike shock for car owners

Thousands of families are facing a surprise tax hike after Chancellor Alistair Darling confirmed that cars up to seven years old would be subject to new road duties.

It was widely believed that older vehicles would be exempted from the shake-up, which is designed to penalise high emissions.

However, the Treasury said that owners of larger cars bought since March 2001 would be hit.

A spokeswoman denied that the move had been slipped through "on the quiet", but admitted that last month's Budget had not "spelt it out".

"It's not as clear in the Budget as it could be," she said. "It's not explicitly spelt out."

News of the unexpected levy is likely to cause fury among motorists amid soaring costs for fuel and other essentials.

Some experts estimate that the Exchequer is already set to benefit from an extra £2 billion in revenue this year thanks to high petrol and diesel prices.

Under the new road tax system, there will be 13 bands ranging from A to M, with vehicles being classed based on their carbon emissions. New cars will also be subject to a so-called "showroom rate".

Mr Darling said the changes would come into effect from next April, and raise an additional £1.2 billion in revenue by March 2011.

However, critics insist he failed to make clear that much of this money would come from older cars.

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