Important changes to the Tax Disc

Good news for small car owners - Lower Road Tax!

From 1st March 2001, the reduced rate of Road Tax that currently applies to cars with engine sizes up to 1100cc is being extended to include engines up to (and including) 1200cc. This will bring a total of some 4 million cars into the reduced rate category. The reduction rewards a greater number of existing keepers for owning a small car. This is part of the Government's drive to encourage people to run smaller cars that are generally more fuel efficient.

How to Get the Reduced Rate

Anyone whose car has an engine size up to 1200cc ( a 1200 Beetle had an engine with1192cc displacement) and renews their TAX DISC from 1st March 2001, will only have to pay the reduced rate of £105 for 12 months and £57.75 for 6 months.

Rebate scheme

But wait. The tax change is being backdated a year so that motorists are entitled to a rebate on licenses (tax discs) taken out between 1st March 2000 and 28th February 2001. You will not get a rebate for licenses purchased before 1st March 2000.

If you sell your car before 28th February 2001 with the licence, the rebate will transfer to the new keeper. You may want to take the rebate amount into account when selling your car.

You can expect to receive £27.50 for a six month licence, £55 for a 12 month licence or £82.50 for a combination of a 6 month and a 12 month licence.

How do you get your rebate?

For the moment, do nothing. Wait until March 2001, when the DVLA will send you a Rebate Application (form V925). This letter will tell you the exact amount of your rebate and, if you return it promptly, you can expect to receive your money within 4 weeks.

If you think you are entitled to a rebate and have not received a form by 1st April 2001, please contact the DVLA on 0870 241 2449 or e-mail: vehicles.dvla@gtnet.gov.uk.

More Good News for Cars Below 1500cc

In the Chancellor's pre-budget statement in November, he announced proposals to further extend the small car scheme (with a £55 reduction in TAX DISC) to cars with engine sizes up to 1500cc inclusive. Both 1300 (1285cc)and 1500 (1493cc) Beetles and Vans qualify. The proposed date for these changes is JULY 2001 but keepers will not lose out and will have their rebate backdated to November 2000.

New cars first registered from 1st March 2001

From 1st March 2001, brand new cars will be taxed in a completely different way. TAX DISC will be charged according to a car's carbon dioxide (CO2) emission figure and fuel type. For full details see information leaflet INF 96 available from the leaflet line on

0845 605 2222.

Further information:

www.dvla.gov.uk/newved.htm

Or phone: 0870 240 0010

Source: DVLA