What is road tax?
Technically road tax doesn’t exist, the correct term is ‘car tax’ often referred to as ‘vehicle tax’ or its old name – Vehicle Excise Duty (VED). Car tax is calculated by taking into account the size of your car’s engine or its official CO2 emissions rating – depending on the date on which your car was first registered. Tax rates change every year, so keep an eye on the rates following the announcement of the annual financial budget.
Image source: Pete
Cars registered before 1st March 2001
Due to lack of emissions data, tax on cars registered before the 1st of March 2001 is calculated based on engine size, with two different tax prices:
| Engine Size | 2014/15 Tax Rate (12 Months) |
| Equal or less than 1549 cc | £145 |
| Over 1549 cc | £230 |
Cars registered on or after 1st March 2001
Cars registered on, or after the 1st of March 2001 are taxed based on their official CO2 emissions ratings. Each level of emissions are assigned a tax band which identifies its annual cost.
| Tax Band | CO2 emissions (g/km) | 2014/15 Tax Rate (12 Months) |
| A | Up to 100 | £0 |
| B | 101-110 | £20 |
| C | 111-120 | £30 |
| D | 121-130 | £110 |
| E | 131-140 | £130 |
| F | 141-150 | £145 |
| G | 151-165 | £180 |
| H | 166-175 | £205 |
| I | 176-185 | £225 |
| J | 186-200 | £265 |
| K | 201-225 | £285 |
| L | 226-255 | £485 |
| M | Over 255 | £500 |
What do I need to know?
Any UK registered vehicle which is parked or driven on public roads must be taxed by law. In order to discourage reckless drivers from driving uninsured vehicles, you cannot tax a vehicle without proof of valid car insurance. As of October 2014, traditional paper tax discs will become obsolete – meaning you no longer have to display one in your car. Tax checks will be carried out by a computerised system which cross references your vehicle’s registration with tax records.
What if I’m not using my car?
If your car is currently off the road or you plan on taking it off the road for storage, you’ll need to declare it – so as to avoid any tax penalties. In order to declare this, the vehicle’s registered keeper must apply for a SORN (or Statutory Off Road Notification). When applying for a SORN, your vehicle must be kept off public roads or land – meaning you’ll need to keep your car on your driveway or in a garage.
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