Motoring Budget 2015: New car tax, MOT and road fund has been announced

George Osborne announces a new motoring budget with VED car tax to proceed going back into road building and maintenance.

Let's take a look at the latest updates here:

Ø  Fuel Duty

Fuel duty will continue to remain frozen for the rest of the year. The average price of petrol is currently 117.1 pence per litre – an increase of 5 pence since March – while diesel costs around 120.4 pence per litre. 

Ø  Road Tax Change

The Government is going to revise the existing road tax system that affects cars registered from 1 April 2017. The first year rate will continue to be based on CO2 emissions and after the first year, a flat standard rate of £140 a year applies to all the emissions cars with the exemption of electric ones. However, electric cars will continue to benefit from zero road tax. 

Please Note – The cars registered before the 1^st April 2017 will remain on the existing VED (Vehicle Excise Duty) scale which will not change. 

George Osborne said the current system is drastically reducing tax for greener vehicles “it’s not sustainable and it isn’t fair” 

While we noticed, the current vehicle excess duty had encouraged people to move into greener cars. However Osborne said that by 2017 over three-quarter of new cars would be low emissions. 

Chancellor Osborne has also added “Every single penny will go into the sustained investment our roads so badly need. Tax paid on people’s cars will be spent on the roads they drive on.” 

Current system for Petrol and Diesel Car:

New registration system car registered from 2017

Ø  MOT

The Government will extend the free MOT limit of new cars and motorcycles from 3 years to 4 years. 

What do you think of motoring changes announced in the Budget 2015? We would love to hear your thoughts...