The vast majority of drivers buying new cars will pay significantly more in car tax from this week - here's what you need to know.

Why are changes being made?

Then chancellor George Osborne announced the changes in the 2015 budget, in response to falling car tax revenue due to more cars qualifying for the low-emission exemption.

Are all vehicles affected?

No. Cars registered before April 1, 2017 won't be affected, so if you're not planning to buy a new vehicle, this won't affect you. Most cars registered on or after that date will be affected.

Okay, are all new vehicles affected?

Zero-emission with a list price of less than £40,000 cars are exempt. Any other new car will be affected.

How so?

Here's what the government says in its official document...

"The first vehicle licence will be calculated on the vehicle’s CO2 emissions.

"The majority of vehicles will then move to a standard rate of £140 annually from the second licence.

"Cars with zero emissions will not pay the standard rate of vehicle tax.

"However, if a car’s list price is over £40,000 at first registration, the customer will pay the additional rate [an extra £310 a year, so £450 a year overall] for five years after the end of the first licence."

The new system will have three classifications: zero-emissions, standard and premium.

Also, there will also be a five-year supplement of £310 a year for any cars costing more than £40,000. This supplement applies to zero-emissions vehicles too, and you can't negotiate with a dealer to bring the price below £40,000 - the tax is set according to the list price, approved by the DVLA.

So will I lose out?

Probably. The majority of new car buyers will. And if you were planning to buy a low-emission car, then definitely.

At the moment, those emitting 99g/km of carbon dioxide are exempt from road tax. New cars bought after April 1 will be exempt only if they have zero emissions, and people buying new low-emission cars will have to pay £120 in the first year, and £140 a year thereafter.

It's estimated the changes will raise an extra £1.4 billion for the government over four years.

What's been said about the changes?

Up to two-thirds of new vehicles that fall into three of the most popular tax bands will leave their owners worse off as a result of the changes being made to Vehicle Excise Duty (VED), according to the RAC.

The breakdown rescue firm has warned the new rules will discourage people from buying some of the least polluting models.

It found that the vast majority of vehicles, unless they are pure electric or one of a few exceptions, will be subject to the same standard rate of annual tax from the second year of ownership.

After paying varying amounts in year one, depending on their car’s CO2 emissions, they will then be charged a flat annual rate of £140.

Under existing rules, cars emitting up to 100g CO2 per kilometre pay nothing, while those emitting between 101 to 110g pay £20.

More information on the vehicle tax rules can be found here