How Much Car Tax in the UK: A Complete Guide
Car tax, also known as Vehicle Excise Duty (VED), is a mandatory tax that all vehicle owners in the United Kingdom must pay. The amount of car tax you need to pay depends on various factors, including the vehicle’s emissions and its list price. In this article, we will delve into the details of car tax in the UK and answer some frequently asked questions.
The amount of car tax you will pay varies depending on the vehicle’s CO2 emissions. Currently, there are thirteen different car tax bands, ranging from A to M. Band A is for vehicles with the lowest emissions, while Band M is for the highest. The car tax rates for each band differ, with Band A being the cheapest and Band M being the most expensive.
To provide you with a general idea, at the time of writing this article, for vehicles registered after April 2017, Band A (CO2 emissions up to 50g/km) is exempt from car tax, while Band M (CO2 emissions over 255g/km) is subject to a yearly tax of £580. For vehicles registered before April 2017, the rates vary.
1. How can I find my vehicle’s CO2 emissions?
You can check your vehicle’s CO2 emissions on the V5C registration document or by using online tools such as the government’s official vehicle tax rate calculator.
2. Do electric vehicles (EVs) still have to pay car tax?
Most electric vehicles are exempt from car tax as they fall into the zero-emission category. However, some high-end EVs with a list price over £40,000 may incur a surcharge of £320 for the first five years.
3. Can I pay my car tax monthly?
Yes, you have the option to pay your car tax monthly via direct debit. However, this incurs a 5% surcharge.
4. Is car tax transferable when selling a vehicle?
No, car tax is not transferable. When selling a vehicle, the remaining car tax does not carry over to the new owner, and they must tax the vehicle themselves.
5. Are there any exemptions from paying car tax?
Yes, some vehicles, such as historic vehicles over 40 years old, are exempt from car tax. Additionally, certain disability exemptions and vehicles used for specific purposes, like agriculture, may qualify for reduced rates.
6. What happens if I fail to pay my car tax?
Failure to pay car tax can result in a fine of up to £1,000, and your vehicle may be clamped, impounded, or even destroyed.
7. Can I claim a refund if I sell my vehicle before the tax expires?
Yes, if you sell your vehicle before the tax expires, you can claim a refund for the remaining months. You can do this online or by post.
Understanding car tax rates in the UK is essential for all vehicle owners. By staying informed, you can ensure that you are fulfilling your legal obligations and avoid any unnecessary penalties or fines. Remember to check the government’s official website for the most up-to-date information on car tax rates and regulations.