Understanding car tax, often referred to as vehicle excise duty (VED) in the UK, is crucial for every car owner. The amount of car tax you’ll pay depends on several factors, including when your vehicle was first registered and its environmental impact. This guide breaks down the costs associated with car tax to give you a clear understanding of how much you can expect to pay.
First-Year Car Tax: Initial Registration
When you register a new vehicle for the first time, you are required to pay car tax that covers the first 12 months. The rate for this initial tax payment is determined by your vehicle’s CO2 emissions. Vehicles with higher emissions incur a higher tax rate, reflecting the environmental impact.
It’s also important to note that diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standards for nitrogen oxide emissions are subject to a higher first-year rate. If you are unsure whether your diesel car meets the RDE2 standard, you can check with the car’s manufacturer.
Below is a table outlining the first-year car tax rates based on CO2 emissions for different types of vehicles:
| CO2 emissions | Diesel cars (TC49) that meet the RDE2 standard and petrol cars (TC48) | All other diesel cars (TC49) | Alternative fuel cars (TC59) |
|---|---|---|---|
| 0g/km | £0 | £0 | £0 |
| 1 to 50g/km | £10 | £30 | £0 |
| 51 to 75g/km | £30 | £135 | £20 |
| 76 to 90g/km | £135 | £175 | £125 |
| 91 to 100g/km | £175 | £195 | £165 |
| 101 to 110g/km | £195 | £220 | £185 |
| 111 to 130g/km | £220 | £270 | £210 |
| 131 to 150g/km | £270 | £680 | £260 |
| 151 to 170g/km | £680 | £1,095 | £670 |
| 171 to 190g/km | £1,095 | £1,650 | £1,085 |
| 191 to 225g/km | £1,650 | £2,340 | £1,640 |
| 226 to 255g/km | £2,340 | £2,745 | £2,330 |
| Over 255g/km | £2,745 | £2,745 | £2,735 |
This initial car tax payment ensures your vehicle is taxed for a full 12-month period from the date of registration.
Standard Annual Car Tax Rates: Subsequent Payments
After the first year, the car tax system transitions to a different, more simplified rate structure. For subsequent years, the tax rate is generally a flat fee that depends primarily on the fuel type of your vehicle.
The standard annual car tax rates are as follows:
| Fuel type | Single 12 month payment | Single 12 month payment by Direct Debit | Total of 12 monthly payments by Direct Debit | Single 6 month payment | Single 6 month payment by Direct Debit |
|---|---|---|---|---|---|
| Petrol or diesel | £190 | £190 | £199.50 | £104.50 | £99.75 |
| Electric | £0 | N/A | N/A | £0 | N/A |
| Alternative | £180 | £180 | £189 | £99 | £94.50 |
Vehicles running on alternative fuels, including hybrids, bioethanol, and liquid petroleum gas (LPG), benefit from a slightly lower annual rate compared to petrol or diesel cars. Electric vehicles, promoting zero emissions, are exempt from car tax, encouraging environmentally friendly choices.
Premium Car Tax for Vehicles Over £40,000
If you own a car or motorhome that had a list price exceeding £40,000 when new, you will be required to pay an additional premium on top of the standard annual rate. This additional charge is set at £410 per year. It’s important to understand that this is based on the list price – the price before any discounts were applied and as published before the vehicle was first registered.
This premium tax is applicable for 5 years, starting from the second time the vehicle is taxed. Zero-emission vehicles, even with a list price over £40,000, are exempt from this premium charge.
Here are the annual car tax rates including the premium for vehicles with a list price over £40,000:
| Fuel type | Single 12 month payment | Single 12 month payment by Direct Debit | Total of 12 monthly payments by Direct Debit | Single 6 month payment | Single 6 month payment by Direct Debit |
|---|---|---|---|---|---|
| Petrol or diesel | £600 | £600 | £630 | £330 | £315 |
| Alternative | £590 | £590 | £619.50 | £324.50 | £309.75 |
To accurately determine the car tax for vehicles in this price bracket, always confirm the list price with your dealer at the point of purchase. This will ensure you are aware of the total vehicle tax liability you will incur.
In summary, understanding “How Much Is Car Tax” involves considering the vehicle’s CO2 emissions for the first year, the fuel type for subsequent annual charges, and potentially a premium for higher-value vehicles. By understanding these components, car owners can accurately budget for their vehicle running costs.
