Car tax bands 2015/16

car tax bands 2015/16

Car tax, also known as Vehicle Excise Duty (VED), is based on either CO2 emissions or on engine size.

For cars registered since March 2001, car tax rates are based on thirteen car tax bands (A to M), each band being defined by a range of tailpipe CO2 emissions as measured on the official test. Car tax for vehicles registered before March 2001 is determined by engine capacity.

For vans registered since March 2001, van tax is flat rated with the exception of vehicles considered to be low emission (having a high Euro Standard) at the time of registration.


Car tax bands 2015/16 – Cars reg since March 2001

For cars registered since March 2001, the car tax bands are differentiated by letter, with tax band A referring to cars which have CO2 emissions which are up to and including 100 g/km. Tax bands B to L relate to cars with CO2 emissions of between 101 and 255 g/km, each band having a range 10-15 g/km. The highest tax band is band M for vehicles which emit CO2 in excess of 255 g/km.

The current tax system includes two tax rates for each band: 'First year' tax which is payable during the vehicle's first of registration, and 'Standard rate' which is payable thereafter.

To incentivise the purchase of the lowest CO2 cars, both the first year and standard rates increase with CO2 emissions. While the standard rate ranges from zero to £505 per year for the highest CO2 cars, the first year rate is more strongly aligned to CO2 – ranging from zero for models in tax bands A to D up to a top rate of over £1,100 payable for the highest emitting cars.

All cars with CO2 emissions of up to 100 g/km pay zero first year and standard rate car tax. Battery electric cars are also exempt from car tax. A legacy from previous tax regimes means that some other types of alternatively fuelled cars (including hybrids and LPG cars) are also given a small £10 discount on both first year and standard rates.

12-month Vehicle Excise Duty rates for cars registered since 1st March 2001*

VED Band Vehicle
CO2 emissions
Standard rate
2015-2016
First year rate
2015-2016
Standard rate
Green car
2015-2016
First year rate
Green car
2015-2016
A Up to 100 g/km £0 £0 £0 £0
B 101-110 g/km £20 £0 £10 £0
C 111-120 g/km £30 £0 £20 £0
D 121-130 g/km £110 £0 £100 £0
E 131-140 g/km £130 £130 £120 £120
F 141-150 g/km £145 £145 £135 £135
G 151-165 g/km £180 £180 £170 £170
H 166-175 g/km £205 £295 £195 £285
I 176-185 g/km £225 £350 £215 £340
J 186-200 g/km £265 £490 £255 £480
K* 201-225 g/km £290 £640 £280 £630
L 226-255 g/km £490 £870 £480 £860
M Over 255 g/km £505 £1100 £495 £1090

*Includes cars emitting over 225 gCO2/km registered between 1 March 2001 and 23 March 2006.
Source: Budget 2015.

Car tax rates 2015-16 – Cars reg before March 2001

For cars registered before March 2001, CO2 emission data is generally not available. As a result, car tax is charged according to the older private/light goods tax class under which a vehicle is taxed according to engine size as measured in cubic centimeters or 'cc'.

As shown in the following table, the current rates for cars in this category are £145 for engines up to 1549cc and £230 for engines of 1550cc or larger.

12-month VED rates for cars (private/light goods) registered before March 2001

VED Band Engine capacity (cc) All car types
2015-2016
N/A Up to 1549 cc £145
N/A Over 1549 cc £230

Source: Budget 2015.

Van tax rates 2015/16 – Vans reg since March 2001

This section includes vehicles classed as vans or 'light goods vehicles' which do not exceed 3,500 GVW (Gross Vehicle Weight). Unlike car tax since 2001, van tax is not linked to CO2. For the majority of conventionally fuelled vans it is simply a flat rate of £225 per year (12 months rate) with the exception of vehicles considered to be 'low emission' at the time of registration.

Low emissions vans pay a reduced rate of £140 per year (12 months rate). Historically these include vans meeting at least a Euro 4 Standard registered between 01 March 2003 and 31 December 2006 (inclusive), and those meeting at least a Euro 5 Standard registered between 01 January 2009 and 31 December 2010 (inclusive). As with other vehicle classes, zero-emission electric vans are exempt from paying Vehicle Excise Duty.

It is worth noting that, for some vehicle classes such as MPVs and in-cab pickups, there can be confusion as to whether a vehicle is a car or van for tax purposes. In most cases this can be resolved by referring to the vehicle's V5 log book which includes a European classification: N1 or N2 denotes a van and the vehicle will be taxed as such (cars are denoted M1; minibuses M2).

In general, a vehicle is classed as a van, or as another form of specialist motor, if it has one or more of the following: more than 8 seats; has a double cab; is a pick-up designed for load carrying; has no windows on the rear side panels; has a gross laden weight of over 1,000 kg.

12-month VED rates for vans (Light Goods Vehicles) not over 3,500 kg GVW

Fuel type Registration date Euro
standard
Tax rate
2015-2016
Diesel, Petrol, LPG, CNG On or after 01 March 2001 N/A £225
Diesel, Petrol, LPG, CNG Between 01 March 2003 and 31 December 2006 Euro 4 £140
Diesel, Petrol, LPG, CNG Between 01 January 2009 and 31 December 2010 Euro 5 £140
Electric N/A N/A £0 (exempt)

Source: Budget 2015.

Van tax rates 2015/16 – Vans reg before March 2001

For vans registered before March 2001 CO2 emission data is generally not available. As a result, van tax is charged according to the older private/light goods tax class under which a vehicle is taxed according to engine size as measured in cubic centimeters or 'cc'.

As shown in the following table, the current rates for vans in this category are £145 for engines up to 1549cc and £230 for engines of 1550cc or larger.

12-month VED rates for vans (private/light goods) registered before March 2001

VED Band Engine capacity (cc) All car types
2015-2016
N/A Up to 1549 cc £145
N/A Over 1549 cc £230

Source: Budget 2015.

Peter Thomas

Author:Peter Thomas
Date Updated:10th Mar 2015

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