Car tax prices have increased by up to £15 on renewals since 1 April 2019 when new legislation came in to effect to boost total costs. The new rules have seen the total charges split into different categories based on when the vehicle was registered to provide different bills for certain drivers. 

Diesel cars with pollution between 171 and 190 g/km will pay £400 more in the first year compared to petrol cars with the same level of pollution. 

This falls to just over £300 when pollution is raised to the second-highest reading between 226 and 255 g/km. 

The highest polluting vehicles are now billed over £2,000 in the first year of owning a vehicle in a crackdown on highly polluting vehicles. 

DVLA’s whopping £2,135 price tag is the same value for both diesel and petrol cars in the only reading where the two fuel types identically match. 

Data from the AA shows standard charges for highly-polluting vehicles have rocketed by £65 since 2015/16 in a dramatic rise. 

Formerly hybrid and low-emission vehicles were exempt from paying any car tax in an incentive for people to buy the eco-friendly vehicles. 

The new rules mean only fully-electric models which do not emit any carbon dioxide and cost less than £40,000 to purchase are exempt from paying car tax charges. 

Vehicles priced over £40,000 are subject to an added £310 charge for the five subsequent years after a car was registered. 

However, this is taken from a models official price and does not always line up with the bill a motorist may have paid if a vehicle was discounted. 

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How to save money on car tax 

Motorists can save money on car tax by going electric and purchasing a vehicle which is fully EV. 

Electric vehicles with zero-pollution priced under £40,000 are now the only type of cars which do not need to pay any road tax charges whatsoever. 

Electric car owners can also benefit from not needing to pay the pricey London congestion bills such as the new Ultra Low Emissions Zone. 

However, a lack of infrastructure and charging stations and concerns a car would run out of batteries easily are reasons many motorists have refused to snap up the latest vehicles. 

Money Saving Expert reveals motorists can save even more money on car tax costs by paying for their bills upfront instead of across instalments. 

Policies can be taken in monthly instalments or paid in two lump sums instead of in one go although experts warn this will usually add a five percent surcharge onto the total costs. 



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