Cars registered on or after 1 April 2018

In the Autumn 2017 Budget, Chancellor Philip Hammond announced that all new diesel cars first registered on or after 1st April 2018 will face going up a VED band if they fail to meet the latest Euro 6 standards under real-world testing.

New cars will have to meet the real driving emissions (RDE) step 2 test that forms part of the current EU type approval process. This means new cars can pollute up to 1.5 times the current 80mg/km NOx limit under real-world driving if they are to avoid going up a tax band.

It is important to remember that the changes only apply to new diesel cars, not vans, and do not impact the subsequent £140 yearly fees all cars have to pay after the first year.  Cars registered before 1st April 2018 will continue to pay the old rates.

Tax year 2018 to 2019
CO2 emissions (g/km) Standard rate* First Year Rate First Year Rate
Diesel vehicles**
0 £0 £0 £0
1-50 £140 £10 £25
51-75 £140 £25 £105
76-90 £140 £105 £125
91-100 £140 £125 £145
101-110 £140 £145 £165
111-130 £140 £165 £205
131-150 £140 £205 £515
151-170 £140 £515 £830
171-190 £140 £830 £1240
191-225 £140 £1240 £1760
226-255 £140 £1760 £2070
Over 255 £140 £2070 £2070

*Cars with a list price of over £40,000 when new pay an additional rate of £310 per year on top of the standard rate, for five years

**This rate applies to diesel vehicles that do not meet the real driving emissions step 2 (RDE2) standard

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 2018.

Band CO₂ emissions Standard rate
g/km £
A Up to 100 0.00
B 101-110 20.00
C 111-120 30.00
D 121-130 120.00
E 131-140 140.00
F 141-150 155.00
G 151-165 195.00
H 166-175 230.00
I 176-185 250.00
J 186-200 290.00
K* 201-225 310.00
L 226-255 540.00
M Over 255 555.00

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.

VED bands and rates for cars and vans registered before 1 March 2001

Engine size Tax year 2017 to 2018 Tax year 2018 to 2019
1549cc and below £150 £155
Above 1549cc £245 £255

VED bands and rates for cars and vans registered before 1 March 2001

Vehicle registration date Tax year 2017 to 2018 Tax year 2018 to 2019
Early Euro 4 and Euro 5 compliant vans £140 £140
All other vans £240 £250