New car tax changes set to have big impact on petrol and diesel owners

New car tax changes could have a major impact on motorists this year.

Road tax, also known as VED, is set to increase in line with inflation in 2022 when new laws will take effect.

VED is rising with the retail prices index measure of inflation next April, although the government hasn't confirmed new rates.

The amount of tax you'll pay will likely depend on your new car's CO2 emissions.

Those that emit zero grams per kilometre of CO2 are expected to continue paying zero.

But petrol and most diesel-powered drivers (including hybrids) that emit between 1g and 50g per km will pay £10 for the first year.

Cars that emit between 51g per kilometre currently pay £25 for the first 12 months.

Vehicles that emit between 76g and 150g per kilometre of CO2 saw their VED rates rise by £5 this year to £220.

The more CO2 a car emits per kilometre of CO2 are usually the worst impacted.

These currently will cost you £2,245 a year in tax before it then rises in April.

You can head to the GOV.UK website to find out how much you're currently paying.

The standard rate, the amount you pay after the second year, for cars registered on or after April 1, 2017, is currently £155 a year.

It comes as the 2021 Budget confirmed another freeze on fuel duty, the tax you pay per-litre of petrol and diesel.

But fuel duty will remain at the same level, 57.95p per litre, that it has been for the past decade.

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In other motoring news, there are 11 driving changes and laws that are coming this year.

Drivers should note that new Clean Air Zones will come into force in more towns and cities.

Also tougher guidelines will be introduced for those who use a mobile phone at the wheel.

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