Car Tax or VED (Vehicle Excise Duty) is changing next year
Published Date: 9th Feb 2016
In the current scheme any car registered before the 1st of March 2001 has two different bands and is very simple to understand. If your vehicle’s engine is smaller than 1,549cc then you’ll pay £145 per year in duty, if it is larger than 1,549cc then the current rate is £230 per year. If your car is older than 40 years then it is exempt from duty and falls under the classic car category.
The rates for a car registered after March 1st 2001 then the amount of duty you pay is decided on the CO2 emissions per kilometre. Then once you find your band there is a first year rate and a continuing annual rate. The first year rate is only for first time buyers and is usually included in the on the road price. Here is the current table based on C02 g/km
| CO2 emissions in g/km (tax band) | First year rate | Annual rate |
| Up to 100 (A) | £0 | £0 |
| 101-110 (B) | £0 | £20 |
| 111-120 (C) | £0 | £30 |
| 121-130 (D) | £0 | £110 |
| 131-140 (E) | £130 | £130 |
| 141-150 (F) | £145 | £145 |
| 151-165 (G) | £180 | £180 |
| 166-175 (H) | £295 | £205 |
| 176-185 (I) | £350 | £225 |
| 186-200 (J) | £490 | £265 |
| 201-225 (K) | £640 | £290 |
| 226-255 (L) | £870 | £490 |
| Over 255 (M) | £1,100 | £505 |
The new plans coming in April 2017 which were outlined in the Government’s 2015 Budget will mean that you will only pay zero duty if your vehicle emits zero emissions. Other than that you will be on the standard rate per year with a first year rate depending on the C02 g/km. See the table below for the new rates for new cars registered in April 2017
| CO2 emissions in g/km | First year rate | Standard rate |
| 0 | £0 | £0 |
| 1-50 | £10 | £140 |
| 51-75 | £25 | £140 |
| 76-90 | £100 | £140 |
| 91-100 | £120 | £140 |
| 101-110 | £140 | £140 |
| 111-130 | £160 | £140 |
| 131-150 | £200 | £140 |
| 151-170 | £500 | £140 |
| 171-190 | £800 | £140 |
| 191-225 | £1,200 | £140 |
| 226-255 | £1,700 | £140 |
| Over 255 | £2,000 | £140 |
Cars over £40,000 are subject to £310 extra a year for the first 5 years.