Motorists to face C02 showroom tax

People buying new cars from April 1 will be landed with another tax, it has emerged.

The new initiative, known as Showroom Tax, is the second stage in the green-led push to tax vehicles on their C02 emissions.

Research carried out by Autotrader revealed that under the rules drivers of certain vehicles will be hit with an additional tax burden of more than £300 in the first year.

It said that people buying a Honda CR-V with 190g/km C02 emissions after April 1 will be slammed with a first-year VED cost of £550. This is compared with a current cost of £210.

Matt Thompson, group marketing director at Auto Trader, said: "Following its introduction in the 2008 budget, the Showroom Tax has been brought in over a two-year time span. The time delay means many potential buyers are unaware of the impending rise in cost."

However, canny buyers can dodge the tax increase by buying before April 1 or spending time choosing a car which falls into a lower tax band.

Mr Thompson added: "Drivers and eco-friendly motorists who don't want to be stung by the new Showroom Tax, should choose a vehicle from tax-band A."

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