'Showroom' tax goes live

01 April 2010

  • New tax payable from April 1
  • Your questions answered
  • Find out how much, here

New cars will be liable for the new 'showroom' tax

Latest News

The Government's new 'showroom' tax comes into effect today, so anyone buying a new car will be liable for this new one-off charge. We answer your questions.

What is the so-called 'showroom' tax?
The new tax is a one-off first-year payment on top of the usual vehicle excise duty rate.

When will I have to pay it from?
The new tax is payable from April 1. It's no joke, either – the new tax could add an extra £515 to your road tax bill.

The payment is based on your new car's CO2 emission and will add between £70 and £515 to your first road tax bill.

Who will pay it?
The new tax will be payable on all cars registered from April 1.

How much will I have to pay?
The table below shows how the additional tax will be charged.

'Showroom' tax rates


VED Rates in 2010-11
Band A (up to 100g/km CO2) no fee
Band B (101-110g/km CO2) £20
Band C (111-120g/km CO2) £30
Band D (121-130g/km CO2) £90
Band E (131-140g/km CO2) £110
Band F (141- 150g/km CO2) £125
Band G (151 to 165g/km CO2) £155
Band H (166 to 175g/km CO2) £180
Band I (176 to 185g/km CO2) £200
Band J (186 to 200g/km CO2) £235
Band K (201 to 225g/km CO2) £245
Band L (226 to 255g/km CO2) £425
Band M (Over 255g/km CO2) £435
+ First Year Rate
+ £0
+ £0
+ £0
+ £0
+ £0
+ £0
+ £0
+£70
+£100
+£190
+£305
+325
+£515
=Total First Year Cost
£0
£20
£30
£90
£110
£125
£155
£250
£300
£425
£550
£750
£950


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