Frequently Asked Questions  
Q

VEHICLE EXCISE DUTY (Road Tax): Please summarise the Vehicle Excise Duty (Road Tax) changes as from March 2001? Then the changes for 2006/2007, 2007/2008, 2008/2008, 2009/2010, 2010/2011 and 2011/2012.

On 24th November 2008 the Chancellor 'U' turned on original proposals.

In the 2011 Budget the Chancellor removed the tax ceiling concession for higher emitting cars registered between 2001 and 2006. Latest tax rates for 2012/2013 announced on 21-3-2012 included.

A

We've put together an automated Road Tax calculator for your car here.

 



Please read down to the latest years.


(The previously set rates for 2009/2010 were substantially changed in the March 2008 Budget.)

Hidden in the March 2007 Budget was a provision that increased First Registration Tax from £38 to £50. This is in additional to the new Purchase Tax from April 2010.

From March 2001 to March 2006 VED Rates were as follows:

The CO2-based VED tax bands for new cars first registered on or after 1 March 2001 are as follows:
Up to 150g/km CO2 the owner pays £90 for a gas-fuelled car, £100 for a petrol-fuelled car or £110 for a diesel.
Up to 165g/km the rates are £110 for gas, £120 for petrol and £130 for diesel.
Up to 185g/km the rates are £130 for gas, £140 for petrol and £150 for diesel.
Over 185g/km (anything from a Nissan Primera III 1.6 at 186g/km to an Aston Martin V8 Vantage at 511g/km) the rates are £150 for gas, £155 for petrol and £160 for diesel.
From July 2001 all cars under 1,549cc first registered before 22/3/2001 qualify for the reduced £105 VED rate and this was backdated with rebates to November 2000. Cars first registered before 22/3/2001 1,550cc or over are taxed at £170pa.

From the April 2002 Budget, VED for cars emitting less than 120g/km CO2 was reduced by a further £30 to £60pa for alternative fuel cars, £70pa for petrol cars and £80 for diesel cars.

As from April 2003 the above VED rates were INCREASED by £5 each band.

From March 2006 - March 2007 VED Rates were as follows:-

First registered before March 2001 and below 1,549cc £110

First registered before March 2001 and above 1,549cc £175

First registered March 2001 onwards:-

Band A 100 g/km CO2 and below Petrol £0 Diesel £0

Band B 101 - 120 g/km CO2 Petrol £40 Diesel £50

Band C 121 - 150 g/km CO2 Petrol £100 Diesel £110

Band D 151 - 165 g/km CO2 Petrol £125 Diesel £135

Band E 166 - 185 g/km CO2 Petrol £150 Diesel £160

Band F 186 - 225 g/km CO2 Petrol £190 Diesel £195

Band G 226 g/km CO2 and above Petrol £210* Diesel £215*

* These rates apply only to vehicles first registered on or after 23-3-2006, otherwise the top rates are Petrol £190 and Diesel £195.

PLG (Private Light Goods) 1st reg before March 2001 £175
PLG (Private Light Goods) 1st reg March 2001 onwards £170
PLG (Private Light Goods) with EU4 engines £110

Full details for all vehicles at www.vcacarfueldata.org.uk

(formerly:www.dvla.gov.uk/vehicles/taxation.htm)


From March 2007 - March 2008 VED Rates were as follows:-

First registered before March 2001 and below 1,549cc £115

First registered before March 2001 and above 1,549cc £180

First registered March 2001 onwards:-

Band A 100 g/km CO2 and below Alt £0 Petrol/Diesel £0

Band B 101 - 120 g/km CO2 Alt £15 Petrol/ Diesel £35

Band C 121 - 150 g/km CO2 Alt £95 Petrol/Diesel £115

Band D 151 - 165 g/km CO2 Alt £120 Petrol/Diesel £140

Band E 166 - 185 g/km CO2 Alt £145 Petrol/Diesel £165

Band F 186 - 225 g/km CO2 Alt £190 Petrol/Diesel £205

Band G 226 g/km CO2 and above Alt £285* Petrol/Diesel £300*

* These rates apply only to vehicles first registered on or after 23-3-2006, otherwise vehicles 226g/km and over remain in Band F.

From March 2008 - March 2009 VED Rates are as follows:-

First registered before March 2001 and below 1,549cc £120

First registered before March 2001 and above 1,549cc £185

First registered March 2001 onwards:-

Band A 100 g/km CO2 and below Alt £0 Petrol/Diesel £0

Band B 101 - 120 g/km CO2 Alt £15 Petrol/ Diesel £35

Band C 121 - 150 g/km CO2 Alt £100 Petrol/Diesel £120

Band D 151 - 165 g/km CO2 Alt £125 Petrol/Diesel £145

Band E 166 - 185 g/km CO2 Alt £150 Petrol/Diesel £170

Band F 186 - 225 g/km CO2 Alt £195 Petrol/Diesel £210

Band G 226 g/km CO2 and above Alt £385* Petrol/Diesel £400*

Private Light Goods EU IV £120

Private Light Goods Standard Rate £180

* These rates apply only to vehicles first registered on or after 23-3-2006, otherwise vehicles 226g/km and over remain in Band F.

From March 2009 - March 2010 VED Rates were supposed to be as follows, but were postponed:-

THESE RATES WERE POSTPONED ON 24-11-08. SEE NEW RATES BELOW

First registered before March 2001 and below 1,549cc £120

First registered before March 2001 and above 1,549cc £200

First registered 1st March 2001 onwards:-

Band A 100 g/km CO2 and below Alt £0 Petrol/Diesel £0

Band B 101 - 110 g/km CO2 Alt £0 Petrol/ Diesel £20

Band C 111 - 120 g/km CO2 Alt £10 Petrol/Diesel £30

Band D 121 - 130 g/km CO2 Alt £70 Petrol/Diesel £90

Band E 131 - 140 g/km CO2 Alt £90 Petrol/Diesel £110

Band F 141 - 150 g/km CO2 Alt £100 Petrol/Diesel £120

Band G 151 - 160 g/km CO2 and above Alt £130 Petrol/Diesel £150

Band H 161 - 170 g/km CO2 and above Alt £155 Petrol/Diesel £175

Band I 171 - 180 g/km CO2 and above Alt £185 Petrol/Diesel £205

Band J 181 - 200 g/km CO2 and above Alt £245 Petrol/Diesel £260

Band K 201 - 225 g/km CO2 and above Alt £285 Petrol/Diesel £300

Band L 226 - 255 g/km CO2 and above Alt £400 Petrol/Diesel £415**

Band M Over 255 g/km CO2 and above Alt £415 Petrol/Diesel £440**

**An exemption was introduced on 14-5-2008 for cars first registered between 1-3-2001 and 22-6-2006. For the year 2009-2010, these cars emitting 201g/km or more were taxed at £300, not the higher rates of £415 and £440 that only apply to cars first registered on 23-3-2006 or later. Then, on 11-11-2008 it was announced that the increase for 2001Y - 2006/55 cars would be postponed.

From March 2010 - March 2011 VED Rates will be as follows:-

THESE RATES WERE POSTPONED ON 24-11-08 AND THE RATES BELOW APPLIES: 

First registered before March 2001 and below 1,549cc £120

First registered before March 2001 and above 1,549cc £200

First registered March 2001 onwards:-

Band A 100 g/km CO2 and below Alt £0 Petrol/Diesel £0

Band B 101 - 110 g/km CO2 Alt £10 Petrol/ Diesel £20

Band C 111 - 120 g/km CO2 Alt £15 Petrol/Diesel £35

Band D 121 - 130 g/km CO2 Alt £85 Petrol/Diesel £95

Band E 131 - 140 g/km CO2 Alt £105 Petrol/Diesel £115

Band F 141 - 150 g/km CO2 Alt £115 Petrol/Diesel £125

Band G 151 - 160 g/km CO2 and above Alt £145 Petrol/Diesel £155

Band H 161 - 170 g/km CO2 and above Alt £170 Petrol/Diesel £180

Band I 171 - 180 g/km CO2 and above Alt £200 Petrol/Diesel £210

Band J 181 - 200 g/km CO2 and above Alt £260 Petrol/Diesel £270

Band K 201 - 225 g/km CO2 and above Alt £300 Petrol/Diesel £310

Band L 226 - 255 g/km CO2 and above Alt £420 Petrol/Diesel £430

Band M Over 255 g/km CO2 and above Alt £455 Petrol/Diesel £455


Additional New Car Purchase tax for higher C02 cars from March 2010:-

Band E 131 - 140 g/km CO2 £115

Band F 141 - 150 g/km CO2 £125

Band G 151 - 160 g/km CO2 £155

Band H 161 - 170 g/km CO2 £250

Band I 171 - 180 g/km CO2 £300

Band J 181 - 200 g/km CO2 £425

Band K 201 - 225 g/km CO2 £550

Band L 226 - 255 g/km CO2 £750

Band M Over 255 g/km CO2 £950


CONFUSION OVER VED ON SECOND-HAND IMPORTS

All vehicle registration and licensing is governed by the Vehicle Excise and Registration Act (VERA). VERA states that any vehicle first registered on or after 1st March 2001 on the basis of an EC Certificate of Conformity or UK type approval  certificate that identifies the vehicle as having been approved as a light passenger vehicle and specifies a CO2 emissions figure, falls to pay vehicle excise duty (VED)  according to its CO2 emissions figure and the type of fuel used.

The term "first registration" used in VERA meant first registration under this legislation and therefore, first registration in the UK. The term did not extend to any initial non-UK registration. Consequently VED was charged according to a vehicle's date of first registration in the UK regardless of whether they were brand new vehicles or imported vehicles that are new to registration in the UK.

That meant that a pre March 2001 car, even a 1995 car, imported after March 2001 was subject to CO2 based tax rather than the normal standard rates for older cars.

However in his Budget of 24 March 2010, the Chancellor announced further changes to VED which would take effect from 1 April 2010.

From 1 April 2010, cars that were registered in the UK after 23 March 2006 but first registered outside of the UK before that date and emit over 225g/km C02, will no longer be licensed in bands L or M. These vehicles will be licensed in Band K in line with how similar cars that were registered in the UK before 23 March 2006 will be taxed.


TAX POSTPONED

On 11-11-2008 it was announced that the planned increase in VED for 2001Y to 2006/55 cars would be postponed, though precise details were not announced.



NEW TAX RATES FOR 2009/2010 ANNOUNCED 24-11-2008

(Originally proposed rates are in brackets for comparison)

From March 2009 - March 2010 VED Rates were as follows:-

First registered before March 2001 and below 1,549cc £125

First registered before March 2001 and above 1,549cc £190

First registered 1st March 2001 onwards:-

Band A 100 g/km CO2 and below Alt £0 Petrol/Diesel £0

Band B 101 - 110 g/km CO2 Alt £0 Petrol/ Diesel £35 (£20)

Band C 111 - 120 g/km CO2 Alt £10 Petrol/Diesel £35 (£30)

Band D 121 - 130 g/km CO2 Alt £70 Petrol/Diesel £120 (£90)

Band E 131 - 140 g/km CO2 Alt £90 Petrol/Diesel £120 (£110)

Band F 141 - 150 g/km CO2 Alt £100 Petrol/Diesel £125 (£120)

Band G 151 - 160 g/km CO2 and above Alt £130 Petrol/Diesel £150 (£150)

Band H 161 - 170 g/km CO2 and above Alt £155 Petrol/Diesel £175 (£175)

Band I 171 - 180 g/km CO2 and above Alt £185 Petrol/Diesel £175 (£205)

Band J 181 - 200 g/km CO2 and above Alt £245 Petrol/Diesel £215 (£260)

Band K 201 - 225 g/km CO2 and above Alt £285 Petrol/Diesel £215 ****(£300)

Band L 226 - 255 g/km CO2 and above Alt £400 Petrol/Diesel £405 (£415**)

Band M Over 255 g/km CO2 and above Alt £415 Petrol/Diesel £405 (£440**)

PLG Vehicles first registered from 1-1-2001

EU4 and EU5 £125

Standard Rate £185

****Band K (£215) also includes cars emitting more than 225g/km first registered between 1-3-2001 and 23-3-2006.

(Explanation: **An exemption was introduced on 14-5-2008 for cars first registered between 1-3-2001 and 22-6-2006. For the year 2009-2010, these cars emitting 201g/km or more were to be taxed at £300, not the higher rates of £415 and £440 that only apply to cars first registered on 23-3-2006 or later. Then, on 11-11-2008 it was announced that the increase for 2001Y - 2006/55 cars would be postponed. ****It was later announced that cars emitting more than 225g/km first registered from 2001Y to 2006/55 would be taxed at Band K rates.)

From March 2010 - March 2011 VED Rates were as follows:-

(Originally propsed rates are in brackets for comparison.)

First registered before March 2001 and below 1,549cc £125

First registered before March 2001 and above 1,549cc £205

First registered March 2001 onwards:-

Band A 100 g/km CO2 and below Alt £0 Petrol/Diesel £0

Band B 101 - 110 g/km CO2 Alt £10 Petrol/ Diesel £20 (£20)

Band C 111 - 120 g/km CO2 Alt £15 Petrol/Diesel £30 (£35)

Band D 121 - 130 g/km CO2 Alt £85 Petrol/Diesel £90 (£95)

Band E 131 - 140 g/km CO2 Alt £105 Petrol/Diesel £110 (£115)

Band F 141 - 150 g/km CO2 Alt £115 Petrol/Diesel £125 (£125)

Band G 151 - 160 g/km CO2 and above Alt £145 Petrol/Diesel £155 (£155)

Band H 161 - 170 g/km CO2 and above Alt £170 Petrol/Diesel £180 (£180)

Band I 171 - 180 g/km CO2 and above Alt £200 Petrol/Diesel £200 (£210)

Band J 181 - 200 g/km CO2 and above Alt £260 Petrol/Diesel £235 (£270)

Band K 201 - 225 g/km CO2 and above Alt £300 Petrol/Diesel £245**** (£310)

Band L 226 - 255 g/km CO2 and above Alt £420 Petrol/Diesel £425 (£430)

Band M Over 255 g/km CO2 and above Alt £455 Petrol/Diesel £435 (£455)

PLG Vehicles first registered from 1-1-2001

EU4 and EU5 £125

Standard Rate £185

****This rate also includes cars emitting more than 225g/km first registered between 1-3-2001 and 23-3-2006.

What are 'First Year' VED rates?:-

From April 2010 anyone buying a new car will pay a different rate of Vehicle Tax for the first tax disc. From the second tax disc onwards they will then pay the standard rate. This will only apply to new cars, not already registered cars.

Band A Up to 100g/km CO2 £0

Band B 101-110g/km CO2 £0

Band C 111-120g/km CO2 £0

Band D 121-130g/km CO2 £0

Band E 131 - 140 g/km CO2 £110

Band F 141 - 150 g/km CO2 £125

Band G 151 - 160 g/km CO2 £155

Band H 161 - 170 g/km CO2 £250

Band I 171 - 180 g/km CO2 £300

Band J 181 - 200 g/km CO2 £425

Band K 201 - 225 g/km CO2 £550

Band L 226 - 255 g/km CO2 £750

Band M Over 255 g/km CO2 £950

 

These are 2011/2012 rates of Vehicle Excise Duty (also known as car tax or road tax) as announced in Budget 2011.

Rates

These are 2012/2013 rates of Vehicle Excise Duty (also known as car tax or road tax) as announced in Budget 2012.

VED 2012

The Chancellor pegged the increase in Vehicle Excise Duty (Road Tax) for 2012/13 to inflation, but this could be the last year that goes by without significant reform. 

Buried in the main Budget document is an admission that as emissions have come down, so too has the amount of tax that the Government is collecting. It also proposes to investigate the option of allowing car owners to pay for road tax by Direct Debit.

"1.206 The Government will consider whether to reform VED over the medium term, to ensure that all motorists continue to make a fair contribution to the sustainability of the public finances, and to reflect continuing improvements in vehicle fuel efficiency. In addition, the Government aims to develop a direct debit system to allow motorists to spread their VED payments. The Government will seek the views of motoring groups on these measures."

It also contains a paragraph that shows that the grace period for displaying a road tax disc will be extended to save on postage costs:

"2.149 VED: tax disc display waiver – The Government will reduce tax disc postage costs by extending to fourteen days the grace period, following the payment of tax, on the non-display of a tax disc in a vehicle. (Finance Bill 2013)"

These are 2013/2014 rates of Vehicle Excise Duty (also known as car tax or road tax) as announced in Budget 2012.

 VED 2013-2014

Cars and light goods vehicles registered before 1 March 2001

The rate of vehicle tax is based on engine size for cars and light goods vehicles registered before 1 March 2001.

Private/light goods (TC11)

Engine size (cc)12 months rate6 months rate
Not over 1549 £140.00 £77.00
Over 1549 £225.00 £123.75

 

Other vehicle tax rates

Light goods vehicles (TC39)

Registered on or after 1 March 2001 and not over 3,500kg revenue weight.

Vehicle12 months rate6 months rate
Light goods vehicle £220.00 £121.00

Euro 4 light goods vehicles (TC36)

Registered between 1 March 2003 and 31 December 2006 and not over 3,500kg revenue weight.

Vehicle12 months rate6 months
Euro 4 light goods vehicles £140.00 £77.00

Euro 5 light goods vehicles (TC36)

Registered between 1 January 2009 and 31 December 2010 and not over 3,500kg revenue weight.

Vehicle12 months rate6 months rate
Euro 5 light goods vehicles £140.00 £77.00

Motorcycle (with or without sidecar) (TC17)

Engine size (cc)12 months rate6 months rate
Not over 150 £17.00 Not available
151-400 £37.00 Not available
401-600 £57.00 £31.35
Over 600 £78.00 £42.90

Tricycles (not over 450kg unladen) (TC50)

Engine size (cc)12 months rate6 months rate
Tricycle not over 150 £17.00 Not available
All other tricycles £78.00 £42.90

Trade licences

Vehicle12 months rate6 months rate
All vehicles £165.00 £90.75
Bicycles (only) not over 450kg £78.00 £42.90
Tricycles (only) not over 450kg £78.00 £42.90

 

VED rates from April 1, 2013

VED Band

CO2 Emissions

Annual rate

First year rate

A

Up to 100

£0

£0

B

101-110

£20

£0

C

111-120

£30

£0

D

121-130

£105

£0

E

131-140

£125

£125

F

141-150

£140

£140

G

151-165

£175

£175

H

166-175

£200

£285

I

176-185

£220

£335

J

186-200

£260

£475

K

201-225

£280

£620

L

226-255

£475

£840

M

Over 255

£490

£1,065

 

These are 2014/2015 rates of Vehicle Excise Duty (also known as car tax or road tax) as announced in Budget 2014.

Ved2

 

Historic Car Tax

In the March 2013 Budget the VED exemption for 'Historic' vehicles first built and registered before January 1973 was extended to 'Historic' vehicles first built and registered before January 1974, but this did not come into effect until April 2014, forcing many owners to re-tax their 1973 cars during the first three months of 2014.

In the March 2014 Budget the VED exemption for 'Historic' vehcles finally became a 'rolling' 40 year exemption, but always dated from April of the relevant year.

 

More on Road Tax what you'll will pay on your car here.

 

 

Cars For Sale




Reader Offers and Prizes

Buying Advice

Honest John's Newsletter

Connect with Honest John

Facebook YouTube