CO2 emissions Rates and Regulations

All new cars registered from 1 July 2008 will have their motor tax rate based on the CO₂ emissions level.  The new CO₂ based system will not apply to vehicles registered pre 2008 or the import of pre 2008 cars.  

New cars registered between 1 January 2008 and 30 June 2008 will initially have their motor tax charged on the basis of the existing engine size (c.c.) system.  However, a low CO₂ emitting new car registered between 1 January 2008 and 30 June 2008 will have its motor tax switched to the lower CO₂ based motor tax rate on first renewal of motor tax post 1 July 2008, when the new CO₂ based system commences.  New cars which are registered in the first 6 months of 2008 whose tax would be more under the new CO₂ based system will continue to pay motor tax on the basis of engine size (c.c.).

Imports

The new CO₂ based system will NOT apply to the import - at any time - of pre-2008 cars.

The only circumstances in which an import would be taxed at the emissions rate are:

1. A car registered abroad between 1st January 2008 and 1st July 2008 and imported after 1st July

2. A car registered abroad after 1st July 2008 and subsequently imported.

Refunds

People who have already taxed their new cars at the cc rate may now see that under the CO₂ system they would be paying less, and may be looking for a refund until such time as they are paying based on CO₂.

There will be no refunds. It is the same situation as pertains when there is a standard change in motor tax rates. People who had taxed their vehicles prior to a rates increase are not pursued to pay the remainder, nor are refunds issued if they are paying extra. There is a set date at which the rates change; in the same way there is a set date at which the new CO₂ based system comes in. Hence, no refunds will be given in these cases.

Cars registered before 2008 (i.e.) cars in the current motor tax system before 2008) will continue to be taxed under the existing system related to engine size (cc).

From July 2008 there will be two separate tax systems for cars. Cars under the current motor tax system will continue to be taxed based on engine size (cc). New cars registered from 2008 will be taxed based on CO₂ emissions level. New low CO₂ emitting cars purchased in the first six months of 2008 will be switched to the CO₂ system on first renewal of motor tax after July 1^st 2008.