As we all know, since last Friday 1 May, the new car tax rate and VED applied on vehicles registered on or after 1 March 2001.

The new vehicle tax rates only applies to cars that have been type approved in category M1 and registered on the basis of CO2 emissions measured in g/km driven, in other words the lower the car’s CO2 emissions the lower the tax payable on it.

This means that cars with extremely low CO2 emissions will be exempt from taxes, while gas guzzlers could be paying fees as high as £405. For 2009, no one will have to pay more than £5 extra for their car tax but from April 2010 the highest polluters will paying extra £30.

While polluters get an increase on their car tax rates, greener car owners will see no change or a possible £30 reduction on April 2010 and alternative fuels cars will continue to receive a small discount with these price changes. The government hopes to incite people to think more about the CO2 emissions than on power when buying a car.

You can find detailed information on how much car tax you’ll have to pay on Audi Nationwide Company Car Tax Page.