What Are The Different Car Tax Bands

Written by Marsh Finance | Nov 6, 2024 2:56:09 PM

Car tax is one of those mandatory payments you just have to make, but not every car will pay the same. The government introduced car tax bands to decide exactly how much car tax each vehicle must pay. Let’s take a look at the current car tax bands and the changes coming in 2025.

👉 What is car tax and how does it work?
👉 Car tax for cars registered before March 1 2001
👉 Car tax for cars registered 1 March 2001 to 31 March 2017
👉 Cars registered from 1 April 2017
👉 Electric cars: the tax situation
👉 Conclusion

How Car Tax Bands Work

Car tax is split into three systems, based on your car’s registration date:

Cars registered before 1 March 2001 → taxed by engine size
Cars registered 1 March 2001–31 March 2017 → taxed by CO2 emissions (bands A to M)
Cars registered from 1 April 2017 → taxed by first-year emissions rate, then a standard rate

Below, you can find each system explained clearly with tables and examples.

Car Tax For Cars Registered Before 1 March 2001

Summary: Cars registered before March 2001 are classed as private/light goods (PLG) vehicles. There are two groups which relate to the cubic capacity of the engine. Vehicles not over 1549cc pay £210 car tax a year. Vehicles over 1549cc pay £345 a year.

PLG Tax Class	12 Months (£)	6 Months (£)
Not over 1549cc	210	115.50
Over 1549cc	345	189.75

Car Tax For Cars Registered 1 March 2001 To 31 March 2017

Summary: There are 13 different bands, going from A to M, measuring how much CO2 your car emits. The closer to A, the lower your annual car tax rate.

	CO2 Emissions (g/km)	Yearly Cost (£)
A	Up to 100	20
B	101 - 110	20
C	111 - 120	35
D	121 - 130	160
E	131 - 140	195
F	141 - 150	215
G	151 - 165	265
H	166 - 175	315
I	176 - 185	345
J	185 - 200	395
*K	201 - 225	430
L	226 - 255	735
M	Over 225	760

*Band K includes cars with CO2 over 225g/km but registered before 23 March 2006

Cars Registered From 1 April 2017 (First-Year Rate + Standard Rate)

Newer cars follow a two-part system:

First-year rate (“showroom tax”) — based on CO₂ emissions
Standard rate (from year two onwards) — £190 for most cars
Premium rate — an extra charge if your car had a list price over £40,000

First-Year VED Rates

CO₂ (g/km)	First-Year Rate (£)	Standard Rate (£)
0	£0	£190
1–50	£10	£190
51–75	£30	£190
76–90	£135	£190
91–100	£175	£190
101–110	£195	£190
111–130	£220	£190
131–150	£270	£190
151–170	£680	£190
171–190	£1,095	£190
191–225	£1,650	£190
226–255	£2,340	£190
Over 255	£2,745	£190

Premium Rate (High-Value Cars)

Quick summary: Modern cars pay a higher first-year tax if they pollute more, followed by a flat rate. Expensive cars get an extra premium charge.

If your car had a list price over £40,000, you’ll pay an extra £410 for five years after the first year. After that, it drops back to the standard rate.

Electric Cars: The Tax Changes Coming in 2025

Summary: EVs will follow the same VED rules as petrol and diesel cars from 2025 onwards.

Electric vehicles have enjoyed years of tax exemptions. That ends in April 2025.

From 2025, EV owners will pay:

First-year rate (£10 for zero-emission vehicles)
Standard annual rate (£190)
Premium surcharge if list price exceeded £40,000

Conclusion

Car tax bands have been a way for the government to fairly charge people based on their car size, emissions and engine size. As time has passed, the driving landscape has evolved, and so have car tax bands. This change is set to be felt the most in 2025, with EVs set to be charged from 2025 onwards.

Don’t let car tax impact your next car purchase. Take the next step today.

Finance your new car with Marsh Finance 🚀👇.

Further Tax Reading

👉 Navigating Car Tax: A Beginner's Guide

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