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Diesel vehicles are about to clobbered with a new tax
TANK TAX

What is the UK diesel car ‘toxin tax’, which towns are affected by the policy and what was announced in the Budget 2017 by Philip Hammond?

AS IF running a vehicle was not expensive enough, it could get a whole lot more pricey for those filling up with diesel.

The government has long been planning a “toxin tax” with plans announced this year to ban all new petrol and diesel cars by 2040 – and diesel drivers were hit hard by the 2017 Budget.  Here's what you need to know...

 Diesel vehicles could be clobbered with a new tax
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Diesel vehicles could be clobbered with a new taxCredit: PA:Press Association

What is the UK 'toxin tax' on diesel cars?

The so-called “toxin tax” is effectively a daily fine on drivers unfortunate enough to have believed that successive governments meant what they said about switching to diesel.

It will leave millions of Sun readers with cars that cost a fortune to run and can’t be resold for anything like their expected value.

The number of diesel cars liable for such charges could be as high as 10 million.

Only the newest vehicles would be excluded.

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Which towns would be affected by the charge?

In up to ten of the worst-affected cities, diesel cars, as well as commercial vehicles, could face bans in peak hours, daily charges to discourage them from entering town centres, or a mixture of the two.

In another 25 towns, commercial diesels such as lorries, coaches and taxis would be the main target.

Only the newest vehicles would be excluded from the “toxin taxes”.

The potential tax raid would be part of the Government’s new air quality strategy.

It had to step up its war on toxic diesel vehicles after a “final warning” by the European Commission for breaching air pollution limits.

Chancellor Philip Hammond abandoned a plan for a scrappage scheme where drivers would be paid to ditch vehicles — because the £2billion cost was deemed too high.

Drivers in London are set to be hit the hardest. Mayor Sadiq Khan is bringing in an additional £12.50 daily charge on diesel vehicles within the North and South Circulars from 2019.

From October 23, the T-Charge was also introduced to London with cars, vans, minibuses, buses, coaches and heavy goods vehicles (HGVs) in central London needing to meet minimum exhaust emission standards, or pay a daily £10 Emissions Surcharge - also known as the Toxicity Charge, or T-Charge.

Should I sell my diesel car and how much would it be worth?

Diesel cars could fall in value by 40 per cent due to the Government’s air quality crackdown.

Estimates say £3,000 would be wiped off the value of the average used motor. And many drivers would fail to sell at all.

However, more than half of drivers polled by Autocar magazine said they still plan to swap their diesel cars for petrol, hybrid or electric.

 Big SUVs like the Range Rover are hit by diesel tax
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Big SUVs like the Range Rover are hit by diesel taxCredit: Range Rover

Cars worst hit by diesel tax hike

We've compiled this list of ten cars that you should watch out for - or at least buy BEFORE April 2018 to avoid a huge tax bill.

And it's not good news for SUV lovers with eight of the list in this class.

  • Audi SQ7 4.0-litre TDI - 199g/km (£88,295)
  • Bentley Bentayga 4.0-litre V8 - 210g/km (£137,055)
  • Hyundai i800 2.5-litre CRDi - 199g/km (£28,545)
  • Range Rover 4.4-litre SDV8 - 219g/km (£86,700)
  • Range Rover Sport 3.0-litre SDV6 - 211g/km (£62,650)
  • Mercedes GLS 350d - 199g/km (£71,430)
  • Porsche Cayenne 4.2-litre - 209g/km (£68,022)
  • Ssangyong Rexton 2.2-litre - 194g/km (£24,495)
  • Ssangyong Turismo 2.2-litre - 196g/km (£23,250)
  • Toyota Land Cruiser 2.8-litre - 194g/km - (£37,230)

What has Theresa May said about the policy and could it be scrapped?

Theresa May ordered ministers not to punish millions of diesel drivers who bought their cars in good faith.

She told The Sun the concerns of hard-working Brits who bought diesel motors a decade ago had to be “taken into account”.

Campaigners said the comments would pile pressure on the Treasury to launch a nationwide scrappage scheme.

“We will take some final decisions but I’m very conscious of the fact that past Governments have encouraged people to buy diesel cars", the Prime Minister said.

“And we need to take that into account when we are looking at what we do in the future", she added.

FairFuelUK co-founder Howard Cox said: “I’m delighted the Prime Minister is receptive to the concerns of millions of hard-working diesel drivers."

What was announced in the 2017 Budget?

In the 2017 Budget Philip Hammond announced that diesel drivers are set to be hit by a tax hike.

Vehicle excise duty for new diesels that don't meet standards will rise from April 2018.

However, an expected fuel duty hike was cancelled as the Chancellor froze prices again.

First-year vehicle exercise duty (VED) for diesel cars that don't meet latest standards will go up one band - while a flat annual rate of £140 will be charged after that.

The diesel supplement on company car tax is also going up by 1%, too.

This will only apply to cars, with commercial vehicles like vans exempt from the changes.

The changes will only apply to cars that don't meet emissions standards and not models fitted with cleaner technology.

But it remains unclear if this means Euro 6 diesels will have to pay the increased rates.

 Some claim diesel cars have been making the air dirtier than it need be
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Some claim diesel cars have been making the air dirtier than it need beCredit: Alamy

What is the Euro 6 list?

Those liable for the charge include diesel cars that are pre-Euro 6 standards, which was introduced in September 2015.

Vehicles affected are light passenger and commercial.

The number of diesel cars liable for such charges could be as high as 10m.

Only the newest vehicles may be excluded.

How has the motor industry reacted?

Car manufacturers have defended diesel cars, as the government prepares to announce its plan for improving air quality.

Society of Motor Manufacturers and Traders (SMMT) chief Mike Hawes said the vehicles have an important future role to play in tackling climate change.

He said: "Some recent reports have failed to differentiate between ... much cleaner cars and vehicles of the past."

The SMMT released a list, entitled “10 facts you need to know about diesel” to call attention to the “progress made” in the design of diesel cars in recent years.

 

What cars are going to be banned in 2040?

There are now plans for new petrol and diesel cars to be scrapped to improve air quality.

The crackdown could also see the introduction of levies on busy roads for owners of the most polluting vehicles.

The strategy was launched on July 27 by Michael Gove and Chris Grayling after it was forced on the government by defeat in a High Court case on air pollution.
It means that from 2040, drivers will be able to buy electric cars only.

The 10 cheap cars to buy and drive into London to beat the £21.50 a day T-Charge
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