Making sense of road tax

24/08/10

Take a deep breath and plunge in. Because working out how much you must shell out for your current car, or your next one, can prove a puzzle.

If you drive a car that produces low levels of carbon dioxide (measured in grams emitted per kilometre driven) you’ll pay very little – perhaps even nothing. But if you drive a big, petrol-engined off-roader or a high-performance model, both emitting high levels of CO2, you’ll pay much more.

If you are about to buy a new car, its CO2 emissions will govern whether your first year’s road tax is free or, at the other extreme, costs £950. But, for their second-year’s tax, they’ll pay a different rate.

There are currently 13 bands, lettered ‘A’ to ’M’, but if you’ve a car that runs on liquefied petroleum gas or other al;ternative fuel, there’s a different scale. ‘Hybrid’ cars, which use a combination of electric and petrol engines, will also pay a different scale.

Cars registered before March 2001 use a simple, two-stage scale. Those with engines of 1549cc or smaller pay £125; anything bigger pays £205. Cars built before 1973 are exempt from road tax.

Vehicles registered before 23 March 2006 and which emit over 225g/km of CO2 pay a reduced rate: see table below
All those buying road tax can choose a disc lasting six months, or a year. Buying a year’s tax is, month-for-month, a fair bit cheaper.

If your car emits 99g/kms of CO2 or fewer, you won’t pay road tax. But you must still apply for, and display, a disc.

Car tax rates for 2010-11
Band
A             (up to 100g/km CO2)      £0
B             101-110                                £20
C             111-120                                £30
D             121-130                                £90
E              131-140                                £110
F              141-150                                £125
G             151-165                                £155
H             166-175                                £180
I               176-185                                £200
J              186-200                                £235
K*           201-225                                £245
L              226-255                                £425
M            over 255                               £435

*band K includes cars that have a CO2 figure of over 225g/km but were registered before 23 March 2006.