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Car Tax - Road Tax Rates

How much road tax costs and how to renew road tax

car tax disc

Known formally as Vehicle Excise Duty (VED) or Variable VED (VVED), the amount of Car tax (annual road tax) you pay depends on engine size or CO2 emission levels depending on the age of the car.

Payment bands for car tax

If your car was registered on or after 1 March 2001, there's a series of Car road tax bands based on on fuel type and CO2 emission levels.

Opt for an alternative fuel to petrol, such as LPG, which has a lower emissions rating, and you'll pay less tax.

There are currently seven payment bands, A to G but as announced in the 2008 budget this is set to rise to 13 car tax bands from 2009. (see table below for details)

The current highest tax band, band G, was added in the 2006 budget and applies only to cars newly registered after 23 March 2006.

The 2008 budget included the announcement that, from 2010, a different road tax rate will apply in the first year of registration for cars in the lowest four bands and the top six bands. (see table below for details)

Official CO2 data

Official CO2 emissions levels are measured when the model is tested for 'type approval' before it goes on sale and it is this official figure only that's used to determine road tax rates.

The official CO2 emissions figure can be found on the V5 registration document.

Websites comparing vehicle specifications can be a useful guide when you're thinking about changing your car but CO2 emissions change with model year, trim levels and transmission so you should always check with the dealer or refer to the V5 for the vehicle you're buying if the level of CO2 emissions is important to you.

Road tax bands


Car road tax bands and 12 months road tax rate for cars first registered on or after 1 March 2001
(As announced in the March 2008 Budget)


VED
band		 CO2
Emissions
(g/km)		 2008/91
standard
rate
CO2
Emissions
(g/km) 		2009/10
standard
rate4		 2010/11
first year
rate5		 2010/11
standard
rate
A Up to 100 0 Up to 100 0 0 0
B 101 - 120 £35 101 - 110 £20 0 £20
C 121 - 150 £120 111 - 120 £30 0 £35
D 151 - 165 £145 121 - 130 £90 0 £95
E 166 - 185 £170 131 - 140 £110 £115 £115
F over 1862 £210 141 - 150 £120 £125 £125
G over 2263 £400 151 - 160 £150 £155 £155
H     161 - 170 £175 £250 £180
I     171 - 180 £205 £300 £210
J     181 - 200 £260 £425 £270
K     201 - 225 £300 £550 £310
L     226 - 255 £415 £750 £430
M     over 255 £440 £950 £455


The Treasury has said but not officially confirmed that cars emitting over 226g CO2/km but bought before Budget 2006 will move into Band K in 2009/10 - and will continue to benefit from a reduced rate, and only in 2010/11 will these cars be placed into the band that corresponds to the car's actual CO2 emissions.

12008/09 rates take effect from 13 March 2008
2Cars registered before 23 March 2006
3Cars registered on or after 23 March 2006
4Alternative fuel car discounts: 2009/10 £20 bands A - I, £15 bands J - M; 2010/11 £10 all cars
5First year rate or 'showroom tax' applies to new car purchases only. Rate reverts to 'standard rate' in subsequent years.

Typical car model in each band


A - VW Polo Bluemotion 1.4 Tdi
B - Skoda Fabia Estate Greenline
C - Mazda 2 1.4
D - Kia Picanto 1.1
E - Renault Clio 1.2 Quickshift
F - Vauxhall Astra 1.4 16V
G - Audi A3 2.0 Tdi
H - Citroen C5 2.2 Hdi Est
I - Ford Mondeo 1.6 Estate
J - Saab 9-3 Estate
K - Peugeot 407 saloon 2.0 Auto
L - Peugeot 807 2.0 Auto
M - Land Rover Sport Auto 3.6 TDV8

Cars registered before 1 March 2001

In many cases the emissions test data is simply not available for cars registered before March 2001, so, the rate of VED can't be linked to CO2 emissions. Yet, there are still discounts to be had for smaller cars. If the engine capacity is 1,549cc or less, you'll pay £120 (up £5 from the 2007/8 rate of £115) compared to £185 (up £5 from the 2007/8 rate of £180) per year if the engine's over 1,549cc.

The March 2008 budget report included the announcement that the rate for smaller engined cars will be frozen at £120 per year for 2009/10. The annual rate for cars registered before March 2001 and with an engine size larger than 1,549cc will increase to £200 for 2009/10.

Taxing tips

  1. You may be able to renew your Road Tax online using the DVLA's new online services.
  2. You can also apply for a tax disc at your local post office or DVLA branch.
    • You must have the tax reminder (V11 licence renewal reminder).
    • If you haven't received a V11 tax reminder you'll need to complete the V5 registration document or the green section (V5/2) and will also have to fill in a V10 'application for a vehicle licence'.
  3. If you've recently bought a new car and you're waiting for the V5 to be returned from the DVLA, you'll need a V5/2 new keeper's supplement.
  4. If you don't have the V5 or V5/2, you can't tax the car at a post office. You will have to apply to the DVLA for a new V5, which could take six weeks to arrive.
  5. You must also have:
    • a valid certificate of insurance or a cover note
    • your MOT test certificate
    • the appropriate fee.

For more details visit the DVLA website .

 

18 July 2008