Changes to Vehicle Excise Duty mean some car drivers will have to pay more tax from April 1.

The 'road tax' rate is changing for cars registered on or after that date.

From then, all but zero emission cars will be subject to a flat fee ranging from £10 to £2,000, depending on the amount of pollution they emit. From the second year, they will pay an annual flat rate of £140.

Chancellor George Osborne announced the proposals in 2015 to reflect improving emissions technology in newer cars.

As greener cars become more popular on the roads, the amount of money the Government is collecting is falling.

Those buying low emission cars will be particularly hard hit because under the existing system cars emitting 99g/km of CO 2 are free of road tax for life.

But after April 1, owners of those cars will have to pay £120 in the first year and then £140 every year after that.

Under the new system, brand new vehicles will be divided into three bands - zero emissions, standard (anything that emits more than zero and itself split into 13 areas) and premium.

There will also be a five-year £310 supplement for any cars costing over £40,000, which kicks in from year two and lasts until year six of the car’s life. This also applies to zero-emissions vehicles.

This means that if the vehicle has a list price of more than £40,000 at registration, the buyer will pay £450 a year - the £140 standard rate and £310 additonal rate. After year five, the tax rate reverts to the standard £140.

Vehicles with a list price exceeding £40,000 with zero emissions (including electric) will pay the additional rate of £310 a year for five years, after the first licence. After five years, these vehicles will pay zero tax.

Buyers cannot negotiate a discount to bring the car under the £40,000 threshold because the list price must be provided to the DVLA.

This means that from April 1, the only cars that will be free to tax will be all electric cars that cost less than £40,000. Owners of low-emission vehicles currently free to tax will have to pay.

The new rules will not apply to existing cars. All cars registered before April 1 will remain in the current tax system, which is not changing.

CO 2 emissions

1st year rate

Standard rate

0

£0

£0

1-50

£10

£140

51-75

£25

£140

76-90

£100

£140

91-100

£120

£140

101-110

£140

£140

111-130

£160

£140

131-150

£200

£140

151-170

£500

£140

171-190

£800

£140

191-225

£1200

£140

226-255

£1700

£140

Over 255

£2000

£140