Older cars not exempt from tax hike

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Thousands of drivers are facing a surprise tax hike after the Government confirmed cars up to seven years old will be subject to new road duties.

It was widely believed older vehicles would be exempt from the shake-up, which is designed to penalise high emissions, but the Treasury has now said owners of larger cars bought since March 2001 would be hit.

Under the new road tax system, there will be 13 bands ranging from A to M, with vehicles being classed based on their carbon emissions. New cars will also be subject to a so-called "showroom rate".

In his Budget last month, Chancellor Alistair Darling said the changes would come into effect from next April, and raise an additional £1.2 billion in revenue by March 2011.

But critics insist he failed to make clear much of this money would come from older cars.

They say owners of vehicles that emit more than 225g of carbon dioxide per kilometre - including some models of Renault Espace and Vauxhall Zafira - will pay £430 in duty in 2010, compared to £210 this year.

A Treasury spokeswoman denied the move had been slipped through "on the quiet", but admitted the Budget had not "spelt it out".

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