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Q&A: New Showroom Tax and how it affects new cars

More about Showroom Tax

Showroom Tax

This additional tax was announced in the last budget and comes into force from 1st April 2010. It is an additional first year tax and is affecting the cars which have the highest CO2 emissions to encourage drivers to buy greener cars. After the first year the amount you pay each will also change but will not be as high as in the first year.

How much will I pay?

Well, that depends on the car but it could be as much as £950 in the first year. However, many cars have had a reduction and those cars which have a CO2 of less than 130 g/km will pay no tax at all. Our sales executives have the full details and can let you know how your car will be taxed and which cars in our range are affected.

What can I do now to reduce my tax?

There is nothing you can do for your existing car but there are things to consider if you are purchasing a new car. Firstly, if the car is available for delivery before the end of March 2010 then it will be exempt from the additional tax. Secondly, check the CO2 of the car you are purchasing and ask what the new tax will be as it may prove to be worthwhile changing the engine choice to a lower CO2 emitting car.

  1. PAUL MAY
    March 21st, 2010 at 14:15 | #1

    Hi Will my Audi A4 Avant TDI 2.0 diesel which I have already ordered from you but not collected yet attract this tax?

  2. Paul Greenberg
    March 25th, 2010 at 18:26 | #2

    Any car registered after the 1st April will come under the new regime but some are reducing and some are increasing. The sales teams have all this information but the car you have ordered at 155g/km has a £5 increase, although you will need to check this with the sales team.

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