Showroom tax takes force, starting next week

March 26, 2010 | By | In News

First-year road tax doubles for top-polluting cars but is free for the most eco-friendly models. From next week, we’ve good news if you’re buying a new fuel-efficient, low CO2 car. If its carbon dioxide emissions rating sits below 130g/km – and you buy on or after April 1 – your road tax will be free for the first year.

On the other hand, if you’re purchasing a new, 10-reg luxury saloon such as, say, a BMW 760Li or a big off-roader such as any Range rover, you’ll pay £950 for your first-year tax disc. Such cars are in the top emissions-related band for road tax because they emit more than 255g/km of CO2.

This is the Government’s so-called ‘showroom’ tax, intended to encourage and reward drivers who choose fuel-efficient, low CO2 models. Full rates for all cars are given below. After the first year, they revert to the annual rates shown. First-year licences for six months will not be available for cars in bands A-D or H-M

First-year Vehicle Excise Duty (road tax) annual rates for 2010-11

Band A (up to 100g/km CO2) no fee

Band B (101-110g/km CO2) no fee

Band C (111-120g/km CO2) no fee

Band D (121-130g/km CO2) no fee

Band E (131-140g/km CO2) £110

Band F (141- 150g/km CO2) £125

Band G (151 to 165g/km CO2) £155

Band H (166 to 175g/km CO2) £250

Band I (176 to 185g/km CO2) £300

Band J (186 to 200g/km CO2) £425

Band K (201 to 225g/km CO2) £550

Band L (226 to 255g/km CO2) £750

Band M (Over 255g/km CO2) £950

VED (road tax) annual rates for 2010-11

Band A (up to 100g/km CO2) no fee

Band B (101-110g/km CO2) £20

Band C (111-120g/km CO2) £30

Band D (121-130g/km CO2) £90

Band E (131-140g/km CO2) £110

Band F (141- 150g/km CO2)£125

Band G (151 to 165g/km CO2) £155

Band H (166 to 175g/km CO2) £180

Band I (176 to 185g/km CO2) £200

Band J (186 to 200g/km CO2) £235

Band K (201 to 225g/km CO2) £245

Band L (226 to 255g/km CO2) £425

Band M (Over 255g/km CO2) £435

Note that the above rates apply to cars registered after March 2001. Cars older than that pay tax at: £125 per year if the car’s engine is 1549cc or smaller; cars with larger engines will pay £205.

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