If you are a car owner in the UK, then road tax must be paid according to the law of the UK. However, the amount of taxes that will be paid varies on something called British road tax bands. These bands are designed to pay tax depending on their car’s emissions or fuel type. In this article, you shall learn about all that you didn’t know before.
How can you save money on road tax?
Here are some of the tips that can save road tax money:
- Go for an Eco-Friendly Car: Road tax for electric or hybrid cars is low-cost.
- Assess Your Car CO2 Emission: Information on the CO2 emission level of a car can help you understand the tax band.
- Stay updated with the charges: Keep updated with the changes in British road tax bands so that you do not pay extra tax.
British Tax Bands for cars registered after April 2017
A new tax system was introduced on April 1, 2017, for new cars registered in the UK. This change was in response to many drivers paying little or no VED due to falling CO2 emissions. The new systems comprise:
- First-Year Rate: This is emission-based on the vehicle’s CO2 and varies widely.
- Standard Rate: With a standard annual £190 rate, the majority pay tax through year 2.
- Premium Rate: Cars with over £40,000 liability incur 5 years’ extra £410 charges after registration.
Upcoming changes in 2025
From April 2025 onwards, major changes to the road taxes policy have been applied including:
- Electric vehicles (EVs), which were exempt from VED, will now come under the standard rate of £190.
- All cars registered after April 2017 will pay the same standard rate regardless of their emissions.
These changes aim to generate more revenue for road maintenance and encourage drivers to consider their vehicle choices carefully.
How to check your car’s road tax band:
Do you want to know which tax band your car falls into? It is super easy! Just head to the UK government website and enter your car registration number. You will get the details of CO2 emission, fuel type, and amount of tax due.
For vehicles registered during this period, the tax bands are as follows:
| VED Band | CO2 Emissions (g/km) | Annual Rate (£) |
| A | Up to 100 | £0 |
| B | 101-110 | £20 |
| C | 111-120 | £35 |
| D | 121-130 | £160 |
| E | 131-140 | £190 |
| F | 141-150 | £210 |
| G | 151-165 | £255 |
| H | 166-175 | £305 |
| I | 176-185 | £335 |
| J | 186-200 | £385 |
| K | 201-225 | £415 |
| L | 226-255 | £710 |
| M | Over 255 | £735 |
As you can see, cars with lower CO2 emissions fall into lower tax bands, which means they incur less tax. For example, a car in Band A pays no road tax at all.
Interesting Facts About Road Tax
- Electric Cars Save Money: Yes, the reason is that electric vehicles produce no emissions, they do not pay any road tax. This is a good option for saving money and working for the betterment of the planet.
- Historic Cars Are Tax-Exempt: If your car is over 40 years old, it’s called a “historic vehicle” and hence there is no road tax for it.
- Road Tax Is Investment: The road tax fund is invested in improving roads, building bridges, and safety for all purposes.
Road Tax-Saving Tips
- Buy Low Emission Cars: Low CO2 emission cars will pay lower taxes.
- Go Electric: Electric cars would be a smart way to save on road tax.
- Check Taxes Before Buying: Always check the taxes before buying any car. Otherwise, you will face a lot of surprises.
Conclusion:
In fact, these taxes are beneficial for the betterment of roads and facilities. It motivates citizens to buy electric cars that play an important role in the reduction of pollution. Understanding the British road tax bands of cars is very important as this can save you money.
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