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How Much Is UK Car Tax: A Comprehensive Guide

Car tax, also known as Vehicle Excise Duty (VED), is a mandatory tax imposed on vehicles in the United Kingdom. The amount of car tax you have to pay depends on various factors, including the type of vehicle, its fuel type, its CO2 emissions, and the date it was registered. Understanding how car tax is calculated can be crucial when budgeting for your vehicle expenses in the UK.

The amount of car tax can range from as little as £0 to several hundred pounds per year. Vehicles emitting no CO2, such as electric cars, are exempt from car tax. However, most cars produce some level of emissions, and the tax for these vehicles is determined based on their CO2 output. The more carbon dioxide a car emits, the higher the tax will be.

To make things easier, the UK government has classified cars into different tax bands. These bands determine the annual car tax amount. For example, in 2021, cars with emissions of up to 50g/km of CO2 fall into the zero-emission band and pay no tax. On the other hand, cars emitting over 255g/km of CO2 fall into the highest tax bracket, paying £2,245 annually.

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1. How can I find out how much car tax I need to pay?
You can check the car tax rates on the UK government’s website or use online calculators specific to car tax.

2. Is car tax transferable when selling a vehicle?
No, car tax does not transfer to the new owner. The new owner will have to tax the vehicle in their name.

3. Are there any exemptions to car tax?
Yes, vehicles with zero CO2 emissions, such as electric cars, and vehicles registered before 1 March 2001 are exempt from car tax.

4. Can I pay my car tax monthly?
Yes, you can choose to pay your car tax monthly; however, it may cost more in the long run due to administrative fees.

5. Do I need to display a tax disc on my vehicle?
No, since October 2014, tax discs are no longer required to be displayed on vehicles.

6. How can I pay my car tax?
You can pay your car tax online, over the phone, or at a post office.

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7. Can I get a refund on my car tax if I sell my vehicle?
Yes, you can apply for a refund on any full months remaining on your car tax after selling your vehicle.

Understanding the amount of car tax you need to pay is essential to avoid any penalties for non-payment. By staying informed about the current tax bands and exemptions, you can budget accordingly and ensure compliance with UK car tax regulations.