From next year the regime for Vehicle Excise Duty will be expanded by six new bands to thirteen, creating a new top "M" band that will charge the highest polluting cars £440 a year. Cars that emit more than 255g of carbon dioxide per kilometre - such as 4x4s and Ferraris - will be charged the top rate and cars that emit less than 150g of carbon dioxide per kilometre - such as the Toyota Prius and Mini - will pay a reduced standard rate.

Just in case first time buyers are undeterred by the hefty tax increase, the VED rate in the first year of owning a gas-guzzling car will more than double to £950 - effectively levying a "showroom tax" on 4x4 buyers. ... Read full article