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Running A Car - Road tax bands

24 May 2012
shutterstock_tax-disk.jpg

Vehicle Excise Duty (VED) – or road tax, as most of us call it – falls into one of 13 'bands'. The higher the car's emissions, the higher the tax it will attract.

VED payable in the first year of a car's life is heavily weighted against cars with high CO2 figures cars; this so-called ‘showroom tax' can be more than £1000. Subsequent years will be less punitive, though, with a sliding scale of taxation coming into effect.

Cars with low emissions get better rates from day one. On the regular scale (from the second year on) the bottom band – band A – incurs no VED charge at all. The next two bands – B and C – are just £20 and £30 respectively. After that there's a big jump to the £105 band D.

Cars producing less than 100g/km of CO2 fall into the zero-tax band A. They include the Bluemotion versions of Volkswagen's Up, Polo and Golf; 1.6 TDCi 95 versions of Ford's Fiesta; Audi A1 diesels; BMW's 116d Efficient Dynamics; Volvo's V40 diesel; and the 1.1, 1.4 and 1.6 diesel versions of Hyundai's i10, i20 and i30.

Band B cars (£20 a year VED) include differently engined versions of the cars in Band A, plus the Audi A3 2.0 TDI; 1.6 diesel and 1.0 Ecoboost versions of the Ford Focus; BMW's new 320d Efficient Dynamics; Nissan's Note; and certain Vauxhall Corsa and Astra models.

Band C cars at £30 a year VED include appropriately powered versions of the SEAT Ibiza, Nissan Qashqai, Skoda Yeti, Mazda CX-5, Ford Mondeo and BMW 5 Series.

The manufacturers' positive response to Government calls for more efficiency is cleaning up the environment and reducing motorists' VED costs, but it's also causing a shortfall in tax revenue, which will have to be addressed. The options include a continuation of tax hikes across the board or a review of the whole system; perhaps to something that more accurately reflects an individual's mileage. Plans are under discussion at the moment.

Road tax rates 2013-14
Band A up to 100g/km CO2 £0
All cars in VED Band A

Band B 101-110g £20
All cars in VED Band B

Band C 111-120g/km £30
All cars in VED Band C

Band D 121-130g/km – £105
Band E 131-140g/km – £125
Band F 141-150g/km – £140
Band G 151-165g/km – £175
Band H 166-175g/km – £200
Band I 176-185g/km – £220
Band J 186-200g/km – £260
Band K* 201-225g/km – £280
Band L 226-255g/km – £475
Band M Over 255g/km – £490

First year VED rates (‘showroom tax')
Band A up to 100g/km CO2 – £0
Band B 101-110g/km – £0
Band C 111-120g/km – £0
Band D 121-130g/km – £0
Band E 131-140g/km – £125
Band F 141-150g/km – £140
Band G 151-165g/km – £175
Band H 166-175g/km – £285
Band I 176-185g/km – £335
Band J 186-200g/km – £475
Band K* 201-225g/km – £620
Band L 226-255g/km – £840
Band M Over 255g/km – £1065

* Band K includes cars that have a CO2 figure of more than 225/g/km, but which were registered before March 23, 2006.


VED-beating cars
Check out our reviews of the cars in the lowest VED bands.
All cars in VED Band A
All cars in VED Band B
All cars in VED Band C

Next: Company car tax >>


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