Getting your car taxed
What to do and where to go
Get a smaller car and you'll notice the fuel consumption will be reduced. The engine's emissions will be lower too. Even the Government wants us to use smaller, cleaner, more fuel-efficient cars. And that means lower road tax.
Known rather formally as Vehicle Excise Duty (VED) or Variable VED (VVED), the amount of road tax you pay depends on emission levels.
Payment bands
If your car was registered after March 2001, there's a whole range of categories based on fuel type and CO
2 emission levels.
Opt for an alternative fuel to petrol, such as liquid petroleum gas (LPG), which has a low emissions rating, and you'll pay less tax. See our list below based on band ratings, for greater detail.
Key points There are now seven payment bands, which depend on your car's CO
2 emissions. The highest, band G, was added in the 2006 budget and applies to cars newly registered after 23 March 2006. Emissions are measured when the model is tested for 'type approval' before it goes on sale. You'll find the official value on your V5 registration document.
Road tax based on band ratings
| Band |
CO2 emissions (g/km) |
Petrol car |
Diesel car |
Alternative fuel car |
| A |
up to 100 |
£0 |
£0 |
£0 |
| B |
101 to 120 |
£40 |
£50 |
£30 |
| C |
121–150 |
£100 |
£110 |
£90 |
| D |
151–165 |
£125 |
£135 |
£115 |
| E |
166–185 |
£150 |
£160 |
£140 |
| F |
186–225 |
£190 |
£195 |
£180 |
| G |
greater than 225 |
£210 |
£215 |
£200 |
But diesel is higher
Compared with petrol, diesel cars produce lower emissions of CO
2 per mile but generally produce higher levels of other toxic pollutants linked to local air quality and health effects.
Cars registered before March 2001
In many cases the emissions test data is simply not available for cars registered before March 2001, so, the rate of VED can't be linked to CO
2 emissions. Yet, there are still discounts to be had for smaller cars. If the engine capacity is 1,549cc or less, you'll get a £65 discount off the new standard annual rate of £175.
Fuel alternatives
The Government wants to encourage us to use alternative fuels, such as LPG. These emit significantly less toxic emissions than diesel and, to a lesser extent, than petrol.
Diesel cars produce lower emissions of CO2 per mile but generally produce higher levels of other toxic pollutants 
Taxing tips
- You can apply for a tax disc at your local post office or DVLA branch.
- You must have the tax reminder (V11 licence renewal reminder).
- If you haven't received a V11 tax reminder you'll need to complete the V5 registration document or the green section (V5/2) and will also have to fill in a V10 'application for a vehicle licence'.
- Key point If you've recently bought a new car and you're waiting for the V5 to be returned from the DVLA, you'll need a V5/2 new keeper's supplement.
- If you don't have the V5 or V5/2, you can't tax the car at a post office.
- You will have to apply to the DVLA for a new V5, which could take six weeks to arrive.
- You must also have:
- a valid certificate of insurance or a cover note
- your MOT test certificate
- the appropriate fee.
Related links
DVLA website
