To qualify for the new lower rate of tax, a new car must achieve a pollution rating of below 100g of carbon dioxide per kilometre travelled on average. The two models most often cited as benefiting from the change are the Honda Insight and the Smart ForTwo Diesel.
However, the Honda Insight was removed from sale last year and the diesel- engined Smart has never been officially imported into the UK. All other conventional "green" vehicles, such as petrol-engined Smarts, the Toyota Prius and Honda Civic IMA hybrid models and various small Citroëns and Daihatsus, just miss the 100g/CO2 threshold. Some electric cars with zero emissions have been zero rated for some time, so there is no change in their treatment.
The move to cut tax on smaller cars generally will see savings for many drivers and be balanced by the rise in tax for the most polluting cars. However, the only group of car owners to see a saving as a specific result of the zero-rated band are the few who bought the Insight. Some 159were sold between 2001, when the CO2-related tax system was introduced, and 2005, when the Insight was deleted from Honda's range. Each owner will save £55 a year on car tax, and so the total loss to the Exchequer as a result of the new band will be £8,745 at most.
Posted on 24th March 2006
IEMA reacts to IPCC report: AR6 Climate Change 2021
- 9th August 2021
IEMA reacts to CCC Progress report to Parliament
- 24th June 2021
IEMA reacts to Climate Change Committee Report
- 15th June 2021
IEMA Reacts to Queen’s Speech
- 11th May 2021
Enhancing Scotland’s EIA Community - Scotland’s EIA Conference 2021 moves online
- 22nd April 2021
IEMA launches senior management briefing on how organisations can benefit from effective environmental auditing
- 29th March 2021