Find Laws Find Lawyers Free Legal Forms USA State Laws
Home » Find Laws » Tax Laws » Car Tax » Car Tax Explained

Car Tax Explained

Car Tax

What is a Car Tax?

In 2008, the United Kingdom’s government implemented a taxation system that was fashioned in order to regulate and authenticate any or all motor vehicles that operate a carbon dioxide-based (CO2) mechanical system; this is oftentimes referred to as the ‘car tax’. Vehicles that utilize a combustion engine that utilized gasoline in order to operate will also contribute to the emission of carbon dioxide contingent on the vehicle’s engine and ecological impact.

The Car Tax was instated in order to promote a more ecologically-friendly and conscious transportation protocol with regard to motor vehicles and their respective carbon footprint; as a result, the United Kingdom’s regulated Car Tax requires its citizens to submit monetary payment in accordance with their respective vehicles environmental viability. This Car Tax is mandated by the Driving and Vehicle Licensing Agency (DVLA) – the DVLA is the administrative organization responsible for the regulation, oversight, and authentication of all motor vehicles and licensed drivers authorized to drive within the United Kingdom.

Vehicles Subject to the Car Tax

In the event that an individual citizen of the United Kingdom owns a registered vehicle that is not being used, they may still be required to pay Car Tax in conjunction with that vehicle; this can take place even in circumstances of long-term storage of a vehicle or lack of usage. However, in the event that an individual applies for a Statutory Off-Road Notification (SORN), that individual will not be required to submit any Car Tax payment with regard to that vehicle.

What is a Car Tax Disc?

Upon the satisfaction of a Car Tax payment, that individual driver will receive a disc, which must be displayed in the windshield of the vehicle in question and viewable by law enforcement agents:

• The Car Tax is monitored by both Law Enforcement, as well as the DVLA; individuals failing to display proper registration may be subject to fines in the event that the Car Tax has been satisfied with regard to that specific vehicle

• Drivers failing to satisfy car tax payments – thus lacking Car Tax discs – maybe subject to the placement of immobilizing device on the tire, which may require a fine in the fee is not paid; in the event that a car tax payment is not satisfied subsequent to a ‘clamping’, the vehicle may be destroyed within 7-days of the failure to make a car tax payment

Car Tax Controversy

In certain debates, the car tax has been referred to as a regressive tax within its latent methodology. Opponents of the car tax maintain that individuals who exist in a lowered-income bracket may not be able to afford a newer model vehicle more succinct with environmental and ecological standards; as a result, that individual may be subject to bear the burden of the car tax. Conversely, more wealthy individuals may be able to purchase newer models of vehicles in compliance with the car tax, thus providing them relief of heavier car tax payments.

NEXT: Child Tax Credit

Related Articles

Link To This Page

Comments

Find an Tax Lawyer
Find an CT Lawyer
Guide to Finding a Lawyer

MORE IN TAX

Child Tax Credit Child Tax Credit
Tips