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|
The amount you pay each year after that depends on the type of fuel the vehicle uses:-
|Electric vehicle||Alternative fuel||Petrol or diesel|
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|
|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|
|A||Up to 100||0.00||0.00|
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