Budget 2017 higher tax announced on diesel cars: How much more will you pay?

A rise in tax on diesel cars has been announced by Chancellor Philip Hammond in today's Budget 2017.

By The Newsroom
Wednesday, 22nd November 2017, 2:36 pm
Updated Tuesday, 12th December 2017, 11:50 am
Diesel emissions
Diesel emissions

The change means those who own a diesel car older than a certain cut-off point will see an increase in the amount of Road Tax they pay on their car each year.

The government says the move is in response to criticism of air pollution surrounding diesel emissions.

The Chancellor announced: 'We published our Air Quality plan earlier this year and we said then that we would fund it through taxes on new diesel cars.

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"From April 2018 the first year VED rate for diesel cars that don’t meet the latest standards will go up by one band and the existing diesel supplement in Company Car Tax will increase by 1 per cent.

"Drivers buying a new car will be able to avoid this charge as soon as manufacturers bring forward the next-generation cleaner diesels that we all want to see.

"And we only apply the measures to cars. So before the headline writers start limbering up let me be quite clear.

"No white van man (or woman) will be hit by these measures."

So how much more will you pay?

For cars first registered between March 1 2001 and 31 March 2017:

Every diesel car will go up one tax bracket. So for example, if you currently pay £185, you will now pay £210. Those paying £115 will now pay £135.

Those paying £520 per year will now pay £535.

For cars registered after April 1 2017, a flat rate of £140 still applies.

Are petrol and diesel fuel prices changing?

No, the duty has been frozen on fuel. Any changes in fuel prices will come from retailers and the price of oil and supply, not from taxation.