2020 VED Update

How much is car tax (VED)?

In March 2020 the Chancellor of the Exchequer announced a number of changes to the VED (Vehicle Excise Duty) rates.

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.


In this article

Choose when your vehicle was registered to quickly jump to your car tax band:



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 2017 - 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 (excluding 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 after 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:

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.

CO2 emissions (g/km) Diesel cars (TC49) that meet the RDE2
standard and petrol cars (TC48)
All other diesel cars (TC49) Alternative fuel cars (TC59)
0 £0 £0 £0
1 - 50 £10 £25 £0
51 - 75 £25 £110 £15
76 - 90 £115 £140 £105
91 - 100 £140 £160 £130
101 - 110 £160 £180 £150
111 - 130 £180 £220 £170
131 - 150 £220 £555 £210
151 - 170 £555 £895 £545
171 - 190 £895 £1,345 £885
191 - 225 £1,345 £1,910 £1,335
226 - 255 £1,910 £2,245 £1,900
Over 255 £2,245 £2,245 £2,235

Annual renewal for cars registered between on or after 1 April 2017(second tax payment onward)
Fuel type Single 12 month payment
Petrol or diesel £155
Electric £0
Alternative £145

 

(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 £335 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 (excluding 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

Band CO2 emission (g/km) Petrol car (TC48) and diesel car (TC49)

(Single 12 month payment)
Alternative fuel cars (TC59)

(Single 12 month payment)
A Up to 100 £0 £0
B 101 - 110 £20 £10
C 111 - 120 £30 £20
D 121 - 130 £130 £120
E 131 - 140 £155 £145
F 141 - 150 £170 £160
G 151 - 165 £210 £200
H 166 - 175 £250 £240
I 176 - 185 £275 £265
J 186 - 200 £315 £305
K 201 - 225 £340 £330
L 226 - 255 £585 £575
M Over 255 £600 £590


Cars registered before 1 March 2001

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

Private or light goods (TC11)
Engine size (cc)
Single 12 month payment
1549 and below £170
Above 1549 £280


Motorcycles and tricycles

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

Engine size Single 12 month payment
Not over 150cc £21
151-400cc £45
401-600cc £69
Over 600 £96
Tricycle not over 150cc £21
All other tricycles £96


Motorhomes

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

Engine size Single 12 month payment
Private or light goods (TC11) engine size 1549 cc and under £170
Private or light goods (TC11) engine size 1550 cc and over £280
Private heavy goods (TC10) £165


Published: 2 October 2018 | Updated: 15 April 2021 | Author: The AA

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