Budget 2008: New road tax rates

12 March 2008

Road tax increases
VED bands A and B unchanged
All other rates increased

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Chancellor Alistair Darling has announced increases to Vehicle Excise Duty D (road tax) from tomorrow.

Only owners of cars in VED bands A and B – those that emit less than 120g/km of carbon dioxide - won't pay any more in road tax.

VED for petrol and diesel cars
Band A (up to 100g/km CO2) no fee
Band B (101-120g/km CO2) £35
Band C (121-150g/km CO2) £120    £5 increase
Band D (151-165g/km CO2) £145    £5 increase
Band E (166-185g/km CO2) £170    £5 increase
Band F (185g/km to 225 CO2)£210    £5 increase
Band G* (226g/km and above ) £385    £100 increase

VED for alternatively powered cars
Band A (up to 100g/km CO2) no fee
Band B (101-120g/km CO2) £15
Band C (121-150g/km CO2) £100    £5 increase
Band D (151-165g/km CO2) £125    £5 increase
Band E (166-185g/km CO2) £150    £5 increase
Band F (185g/km to 225 CO2)£195    £5 increase
Band G* (226g/km and above ) £385    £100 increase

Changes to VED rates will take effect from 13 March 2008. VED rates for all cars registered before 2001 will rise by £5.

* For new cars registered from 23 March 2007