UK Road Tax

UK Road Tax

First introduced in 1888, the UK road tax is formally known as the Vehicle Excise Duty (VED). The mandatory tax is payable for most vehicles that operate on public roads. Once paid, a vehicle licence or tax disc is issues for display on the vehicle. In order to obtain a tax disc, the vehicle must pass the Ministry of Transport (MOT) test for roadworthiness and emissions if the vehicle is older than three years. Owners must also have appropriate vehicle insurance.

Tax Rates

The VED rate is calculated based on the engine size or the fuel type and CO2 emissions produced. Cars registered before 1 March 2001 are levied a rate based on the vehicle's engine size, while vehicles registered on or after 1 March 2001 are taxed based on emissions and the fuel type. Specific types of vehicles may also have their own tax rates.

Vehicles Registered Before 1 March 2001

As of 1 April 2013, cars or light goods vehicles with an engine size of up to 1549 CC are taxed ₤77 (6 months rate) or ₤140 (12 months rate). Similar vehicles with an engine size of over 1549 CC are taxed ₤225 (6 months) or ₤123.75 (6 months).

Cars Registered On or After 1 March 2001

For cars registered on or after 1 March 2001, rates are divided into bands depending on emissions. Rates are available for a 12 month or 6 month period. Lower CO2 emissions result in lower tax rates. The table below summarises VED rates for petrol and diesel cars registered as of 1 March 2001. The tax rate for alternative fuel cars receive a 10 pount discount for the 12 month rates and a 5.50 pount discount for the 6 months rate.

Band

CO2 emission (g/km)

12-month rate

6-month rate

  • A

    Up to 100

    ₤0.00

    Not Available

  • B

    101 to 110

    ₤20.00

    Not Available

  • C

    111 to 120

    ₤0.00

    Not Available

  • D

    121 to 130

    ₤105.00

    £57.75

  • E

    131 to 140

    ₤125.00

    £68.75

  • F

    141 to 150

    ₤140.00

    £77.00

  • G

    151 to 165

    ₤175.00

    £96.25

  • H

    166 to 175

    ₤200.00

    £110.00

  • I

    176 to 185

    ₤220.00

    £121.00

  • J

    186 to 200

    ₤260.00

    £143.00

  • K

    201 to 125

    ₤280.00

    £154.00

  • L

    226 to 255

    ₤475.00

    £261.25

  • M

    Over 255

    ₤490.00

    £269.50

Note: Vehicles eligible for K rates include cars registered before 23 March 2006 with a CO2 emission level of over 225 g/km.

First Year Rates

Tax rates for a car's first tax disc are higher than subsequent annual and semi-annual rates. The table below outlines the first year tax rates for petrol and diesel cars registered on or after 1 April 2010. Alternative fuel vehicles receive a 10 pound discount for 12 month rates and a 5.50 pound reduction for 6 month rates provided below.

Band

CO2 emission (g/km)

12-month rate

6-month rate

  • A

    Up to 100

    ₤0.00

    Not Available

  • B

    101 to 110

    ₤0.00

    Not Available

  • C

    111 to 120

    ₤0.00

    Not Available

  • D

    121 to 130

    ₤0.00

    Not Available

  • E

    131 to 140

    ₤125.00

    £68.75

  • F

    141 to 150

    ₤140.00

    £77.00

  • G

    151 to 165

    ₤175.00

    £96.25

  • H

    166 to 175

    ₤285.00

    Not Available

  • I

    176 to 185

    ₤335.00

    Not Available

  • J

    186 to 200

    ₤475.00

    Not Available

  • K

    201 to 125

    ₤620.00

    Not Available

  • L

    226 to 255

    ₤840.00

    Not Available

  • M

    Over 255

    ₤1,065.00

    Not Available

Other Vehicle Tax Rates

Specific vehicles other than passenger cars may be charged different VED rates. For example, light goods vehicles registered on or after 1 March 2001 with a revenue weight of up to 3,500 kg are taxed a 12 months rate of ₤220 and a 6 months rate of ₤121. Euro 4 light goods vehicles with up to 3,500 kg revenue weight are levied a 12 months rate of ₤140 and a 6 months rate of ₤77, while Euro 5 light goods vehicles are taxed ₤140 and ₤70 for 12 and 6 month periods respectively.

Motorcycles with or without a sidecar are taxed based on the vehicle's engine size. A motorbike with an engine not over 150 CC is charged ₤17 for a 12-month period and one with an engine between 151 and 400 CC is taxed ₤37 (a 6-month rate is not available). A 12 months rate of ₤57 and a 6 months rate of ₤31.35 are applicable for motorcycles with an engine size of between 401 and 600 CC. Motorcycles with engine sizes of over 600 CC are taxed at ₤78 for 12 months and ₤42.90 for a 6-month disc. Tricycles with engines up to 150 CC are taxed ₤17 (12 months rate), while all other tricycles tricycles are taxed ₤78 for a 12-month disc and ₤42.90 for 6 months.