Pedants will point out that there is in fact no such thing as road tax, and they are quite correct. In the UK we don’t pay tax on our roads, but on our vehicles, hence it is known as Vehicle Excise Duty, or VED.
For all new cars the first year VED rate is linked to CO2 emissions, so the less polluting a car is the less you’ll pay in tax. Zero emissions pure electric or hydrogen fuel cell cars are exempt from paying VED, while for the most polluting cars owners are required to pay up to £2000 in first year.
Cars Costing More Than £40,000
In addition, all cars costing more than £40,000 (including pure electric such as the Tesla range) attract a premium vehicle tax. This is for the list price and includes any optional extras. It means owners of such cars must pay £310 per year on top of the regular VED rate. This is payable between years two and six of the car’s life, so adds up to an extra £1550 in total. After year six the car reverts to the standard rate of VED.
How Much You’ll Pay
If you’re unsure about how much you will pay in road tax on your next new car we can help. Just use our Ask a Question form to send us the make, model, engine size and whether the car uses a manual or automatic gearbox and we’ll be happy to answer. Alternatively, the table below outlines VED costs for cars from brand new, as well as in subsequent years.
|CO2 Emissions||Petrol Car First Year Cost||Diesel Car First Year Cost||Alternative Fuel Car First Year Cost||Petrol and Diesel Cars After First Year||Alternative Fuel Cars After First Year|
How To Buy VED
While it is possible to still buy your road tax in person at a Post Office, most instead do it online via the government’s vehicle tax website. You can spread the cost by paying monthly or every six months, but you’ll be charged an extra 5% for the privilege, so if you can pay for the full year upfront it makes sense to do so.
Click on the images below to see questions and answers relating to different types of car: