UK Road Tax changes

Changes announced in the March budget included some major changes to the Vehicle Excise Duty, particularly for those with big engined cars who will see their rates more than double from 2009. The new high rate will not only apply to cars built from 2009, but will also be backdated to vehicles registered after March 2001 (Y-plate and newer cars).

Vehicles that are older than March 2001 will be split into two classes. Engines upto 1549cc will cost £120 per year, and engines over 1550cc will cost £200 per year.

The new rating system will expand from it's current 7 bands upto 13 bands (based on your cars CO₂ emissions). Therefore the cleaner your car's engine, no matter what the size is, the less it'll cost. Below is a table for comparing the current banding system with the proposed new banding system...

Old Band	CO2 (g/km)	New Band	CO2 (g/km)	Standard VED 2009/10	Standard VED 2010/11	New Car rate 2010/11
A	100 and below	A	Up to 100	Nil	Nil	Nil
B	101 to 120	B	101-110	£20	£20	Nil
		C	111-120	£20	£35	Nil
		D	121-130	£90	£95	Nil
C	121 to 150	E	131-140	£110	£115	£115
		F	141-150	£120	£125	£125
D	151 to 165	G	151-160	£150	£155	£200
		H	161-170	£175	£180	£250
E	166 to 185	I	171-180	£200	£205	£300
		J	181-200	£250	£260	£425
F	186 to 225	K	201-225	£325	£335	£550
G	225 and above	L	226-255	£400	£410	£750
		M	Over 255	£425	£440	£950

Acticle added 1^st May 2008 - Information sourced from: Car Mechanics Magazine, May 2008, Page 10

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