Budget 2020: Road Tax rates for new cars in 2020/2021

Published 11 March 2020

These are 2020/2021 rates of Vehicle Excise Duty (also known as car tax or road tax) as announced in the Budget 2020. 

VED bands affect cars first registered on or after 1 April 2017. New rates take effect on 1 April 2020. 

Want to know how much it’ll cost to tax a car registered before 2018? Click here

Tax year 2020 to 2021   
CO2 emissions (g/km) Standard rate
First Year Rate First Year Rate
Diesel vehicles*
0 £0 £0 £0
1-50 £150 £10 £25
51-75 £150 £25 £110
76-90 £150 £110 £135
91-100 £150 £135 £155
101-110 £150 £155 £175
111-130 £150 £175 £215
131-150 £150 £215 £540
151-170 £150 £540 £870
171-190 £150 £870 £1305
191-225 £150 £1305 £1850
226-255 £150 £1850 £2175
Over 255 £150 £2175 £2175

*Applies to diesel vehicles that do not meet the real driving emissions step 2 (RDE2) standard.

Cars with a list price of over £40,000 when new pay an additional £325 per year on top of the standard rate, for the first five years before returning to the rates listed above. 

Comments

K99    on 13 March 2020

What’s not mentioned is that co2 is measured from April using the latest testing regime which means large changes for some cars. Eg Skodiaq SEL 1.5 Dsg goes up by £645 in April.

Edited by K99 on 13/03/2020 at 10:17

Rob Pollock    on 13 March 2020

With the rising cost of manufacturing today's vehicles, many now breach the £40k retail price and attract the 'luxury car tax'. This should have been increased in line with inflation, we have a government which says it rewards those of us who work had, but this is not a reward, it's a tax.

Jacobs Dad    on 13 March 2020

So how should car/road tax be determined?
I guess on how polluting they are and how much the ware out the road &/or cause congestion. There seems little if any correlation between the new tax system & the vehicle. Ot us now clearer than ever that this is just another way to get money from the general public. How much gets ploughed back into infrastructure & combating pollution is anyone's guess. Would I be wide of the mark if I suggest no more than 15%?

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