New road tax prices – how it will affect you

View images of budget-beating cars

The 2008 Budget announcement revealed a major reform of the current car tax system – which will reward drivers of green cars, but anger those driving more polluting vehicles.

From March 13 2008, bills for cars falling in tax bands C to F will increase by £5 for a 12 month tax disc.

Tax bands A and B remain the same at zero and £35 respectively, while motorists forking out for band G tax will see their bill increase to £400.

However, the major overhaul announced in the 2008 Budget will take place next year when the current seven bands are increased to thirteen – from A to M.

Cars which emit less than 100g/km of CO2, such as the Volkswagen Polo Bluemotion and Seat Ibiza Ecomotive will remain tax exempt.

But from April 2010, many new car buyers will have to pay a special 'first year rate' tax, which Chancellor Alistair Darling says will encourage buyers to choose greener cars.

We asked the UK’s top motoring and political figures for their reactions, and you can read their views by clicking here.

Buyers of cars which fall into revised tax bands A, B, C and D will pay nothing in the first year, with bands B to D attracting a £20 to £95 rate thereafter.

And buyers of cars falling into revised tax bands E to G will pay £115 to £155 from purchase.

Vehicles in Band H and above will pay a premium rate of car tax, ranging from £250 to £950 in the first year, with future years payments dropping to between £180 to £455.

The Chancellor also announced a tax cut for drivers of alternative-fuel cars in 2009, which range from £15 to £20, however from 2010 this discount will be a £10 flat rate.

The revised tax bills for 2008-9

The new tax system 2009-10 and 2010-11

New road tax prices - 2009 guide

View images of budget-beating cars

How much will it cost to tax YOUR car? Have your say on the Auto Trader Blog.