Do you know and understand the latest car tax rules? Still can't get over the loss of the little disc that was so simple to understand! Then you are not alone. Why not take a quick look at our car taxation guide below to new cars, old one, exempt ones and more.
The price of an annual car tax disc is now based on how much carbon dioxide (CO2) a car emits and what fuel it uses. The old system of car road tax, which was based only on engine size, was changed to encourage drivers out of gas-guzzling, high-emissions older cars and into newer, smaller-engined ones.
The Government hopes that the CO2-based system will encourage the purchase of more fuel-efficient vehicles and those emitting less carbon dioxide (CO2 output is proportionate to the amount of fuel burned), and also to get drivers to use more environmentally-friendly fuels.
There are six CO2 grades.
No new cars on sale currently meet the criteria for the lowest Band A (emitting up to 100g/km) bar special-order electric models, but a number of small city cars, and larger hybrids such as the Honda Civic IMA and Prius, qualify for Band B (101-120g/km). Inside these six bands, there are additional penalties or incentives based on the type of fuel used: alternative fuels get a part-rebate, while diesel fuels are penalised for their increased particulate emissions.
Bands | CO2 rating (g/km) |
Diesel 12 month |
Petrol 12 month |
Alternative fuel 12 month |
Band A | Up to 100 | £75 | £65 | £55 |
Band B | 101-120 | £85 | £75 | £65 |
Band C | 121-150 | £115 | £105 | £95 |
Band D | 151-165 | £135 | £125 | £115 |
Band E | 166-185 | £160 | £150 | £140 |
Band F | Over 185 | £170 | £165 | £160 |
If your car was registered before 1st March 2001, then the Vehicle Excise Duty you have to pay is based on your engine size: £110 for 12 months on vehicles up to 1549cc and £165 for those over 1549cc