The Car Loan Warehouse|The Road Tax Breakdown

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The Road Tax Breakdown

August 28, 2014

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.


The Car Loan Warehouse|The Road Tax Breakdown

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.


If you’re in the market for a new set of wheels, the Car Loan Warehouse can help. Our competitive car finance deals could mean your dream car is more affordable than you think. Try out our quick and easy online car loan calculator for an instant quote, or apply now for a quick no-obligation decision.

About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.