2020 VED Update

Vehicle Excise Duty (VED) or car tax must be paid each year if you own a car, van or motorhome. You can learn more about what it is in our guide to car tax.

How much tax you pay depends on how old your vehicle is, how much it cost and its CO2 emissions. Read on to find out which car tax band your vehicle falls into.

What decides how much car tax I pay?

Vehicle Excise Duty is linked directly to your car, van or motorhome and the cost varies depending on vehicle age, list price and CO2 emissions. The different rates are known as car tax bands, road tax bands or VED bands.

Here’s how the rules work if your car was first registered on these dates:

• On or after 1 April 2025 - There are 2 different payments. The first payment or “showroom tax” is based on the official CO2 figures when the car was built. It’s followed by an annual renewal based on the fuel type. As well as this, there's a premium for vehicles with a list price of over £40,000. This now includes zero emission vehicles.


• Between 1 March 2001 and 31 March 2017 - You'll pay based on the car's official CO2 emissions and fuel type.


• Before 1 March 2001 - The tax you pay will depend on the engine size. This has increased slightly in the latest budget.


• For cars over 40 years old, there's no tax to pay. As of 1 April 2020, all cars built before 31 March 1980 are tax exempt, but still need to be registered with the DVLA.


• Motorcycle, tricycle and motorhome rates can be found here.

Understand the basics of car tax

There are a few basics that it’s helpful to understand about car tax.

You must tax your car if:

• Your vehicle is registered in the UK and is used on public roads, unless you are exempt due to a disability.

Vehicle tax cost is based on:

• How old your vehicle is.
• Its engine size.
• Its official CO2 emissions. This figure is on the V5c registration document. It’s measured in official tests before a new model can be put on sale. 
• Since April 2017 it depends on the car’s list price when new, too.

You should contact the DVLA if:

• You’re not using your car. You must either let the DVLA know that your car's being kept off-road with a SORN (Statutory Off Road Notification) or continue to tax it.
• You change address. Make sure you tell the DVLA, otherwise you may not receive your tax renewal documents.

You could be fined if:

• You fail to tax your vehicle. That means a fine of £80, but halved if paid within 28 days. Even if your car tax is £0, you still need to re-tax your vehicle every year to avoid a fine.
• You don’t pay and the case goes to court. Then the fine can be up to £1,000. You may also be required to pay the outstanding VED back to when it was last taxed or SORN

Remember:

• The DVLA stopped issuing paper tax discs from 1 October 2014.
• You can check the tax status of any vehicle – all you need is the vehicle’s make and registration number. 

Cars registered between on or after 1 April 2017

These are the VED rates for cars registered on or after 1 April 2017. Cost is first payment.

Annual renewal for cars registered between on or after 1 April 2017(second tax payment onward)

(Alternative fuel vehicles include liquid petroleum gas, hybrids and bioethanol powered)

Vehicles with a list price of more than £40,000

You have to pay an extra £620 a year for 5 years after the first year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000.This now includes zero emission vehicles. 

Cars registered between 1 March 2001 and 31 March 2017

These are the road tax bands for cars first registered between 1 March 2001 and 31 March 2017

Cars registered before 1 March 2001

These are the road tax bands for cars first registered before 1 March 2001

Motorcycles and tricycles

Motorbikes have different road tax rates and bands compared to cars.

Motorhomes

Motorhomes registered between 1 April 2017 and 11 March 2020 will pay a different rate of tax based on the M1SP category.