Road tax changes

The new road tax rules will come into force in two stages from March 2009-April 2010

In March 2009 the number of tax bands will increase from seven to 13 categories and range from bands A to M.

Road tax costs will be calculated as follows:

Road tax from April 2009

Tax band	CO2 emissions (g/km)	Annual rate
A	Up to 100	FREE
B	101-110	£20
C	111-120	£30
D	121-130	£90
E	131-140	£110
F	141-150	£120
G	151-160	£150
H	161-170	£175
I	171-180	£205
J	181-200	£260
K	201-225	£300
L	226-255	£415
M	Over 255	£440

 

In April 2010, tax disc rates will rise, with higher emission cars costing up to £15 more to tax.

All cars emitting less than 100g/km CO2 are tax exempt.

Buyers of newly registered, polluting models must also pay a one-off first-year tax – which could cost as much as £950 – while eco-friendly drivers are gifted tax exemption instead.

This could be a very costly tax for some UK drivers.

The first-year tax badly affects owners of cars emitting more than 161g/km CO2, with tax band M cars being stung with the maximum £950 fee.

Owners of new cars releasing less than 130/gkm CO2 do not have to pay road tax in the first year.

 

How much car road tax do I have to pay?

It can be very difficult to work out how much your next few tax discs will cost.

The road tax system is complex. Tax bands and rates will change next April and Government websites are tricky to understand.

Let Parker’s road tax calculator figure it out for you.

All you have to do is tell them what car you drive and they will do the hard work. their helpful tool is quick and easy to use, working out how much tax you must pay now, next year and in 2010. It even breaks rates down into half-year and annual payments and adds the 2010 first-year registration fee on for you.

How much will you pay? Try Parker’s road tax calculator

Subscribe to Motor Trade Insider by Email