Cars registered on or after 1 April 2017

For cars registered from 1 April 2017, the following rates will apply.

CO₂ emissions Standard rate First year rate
g/km £ £
0 0.00 0.00
1–50 140.00 10.00
51–75 140.00 25.00
76–90 140.00 100.00
91–100 140.00 120.00
101–110 140.00 140.00
111–130 140.00 160.00
131–150 140.00 200.00
151–170 140.00 500.00
171–190 140.00 800.00
191–225 140.00 1,200.00
226–255 140.00 1,700.00
Over 255 140.00 2,000.00

The amount you pay each year after that depends on the type of fuel the vehicle uses:-

Electric vehicle Alternative fuel Petrol or diesel
£0 £130 £140

For vehicles with a value of £40,000 and above, you’ll pay a rate based on CO2 emissions the first time it’s taxed.

After the first 12 months, you’ll pay a rate based on the fuel the vehicle uses and an additional rate of £310 a year for the next 5 years.

Fuel type Standard annual rate Additional rate Total annual payment
Electric £0 £310 £310
Alternative £130 £310 £440
Petrol or diesel £140 £310 £450

Cars registered before 1 April 2017

If the car was registered on or after 1 March 2001, there’s a series of car tax bands based on fuel type and CO2 emission levels. The following rates apply from 1 April 2016.

Band CO₂ emissions Standard rate First year rate
g/km £ £
A Up to 100 0.00 0.00
B 101-110 20.00 0.00
C 111-120 30.00 0.00
D 121-130 110.00 0.00
E 131-140 130.00 130.00
F 141-150 145.00 145.00
G 151-165 185.00 185.00
H 166-175 210.00 300.00
I 176-185 230.00 355.00
J 186-200 270.00 500.00
K* 201-225 295.00 650.00
L 226-255 500.00 885.00
M Over 255 515.00 1,120.00

In the 2016 Budget, the Chancellor made two announcements about Vehicle Excise Duty (VED).

The government will legislate to place the classic vehicle VED exemption on a permanent basis from 1 April 2017, so that from 1 April each year vehicles constructed more than 40 years before the 1 January of that year will automatically be exempt from paying VED. (It is currently up to registered keepers to apply to tax a vehicle in the historic class).

From 1 April 2016, VED rates for cars, vans, motorcycles and motorcycle trade licences will increase by RPI.

* Includes cars with a CO2 figure over 225g/km but were registered before 23 March 2006.

Cars registered before 1 March 2001

Car tax is based on engine size, as official CO2 data wasn’t generally available. So, if the engine is:

  • Engine 1549cc or smaller – 2016/17 rate = £145 per year
  • Engine bigger than 1549cc – 2016/17 rate = £235 per year