Car tax bands 2014-15

Car Tax Bands 2014'Car tax', also known as 'road tax' and formally known as Vehicle Excise Duty, is based either on a 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.


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.


As announced in Budget 2014, the tax rates for 2014-15 are shown below.


Car tax bands 2014-15

– Cars registered since March 2001 Return to top

The rates shown are for 01 April 2014 to 31 March 2015 as announced in Budget 2014.

Vehicle Road Tax BandsThe majority of motorists know that they need to pay car tax in order to legally drive their vehicle on the public roads. What they may be less aware of is the car tax bands system, which dictates what level of car tax applies to their particular vehicle.

Traditionally road tax bands have been differentiated according to the capacity of the engine; the larger the engine the higher the vehicle tax bands which apply. Since 2001, the amount of CO2 emissions are used to determine the road tax bands which apply to each vehicle.

In response to concerns about the environmental impact of ever increasing atmospheric CO2 levels, car tax bands have been split into thirteen discreet categories, with the car tax levy being based on the level of CO2 emissions measured during the standard NEDC test. The majority of cars manufactured from March 2001 will be subject to car tax bands based on their CO2 emissions levels. Vehicle tax for cars made prior to 2001 will still be determined by engine capacity. The cost of the road tax bands generally increase a little each year, as car tax is subject to annual price rises.

The tax bands are differentiated by letter, with Tax Band A referring to cars which have CO2 emissions which are up to including 100g/km. Tax Bands B to L relate to levels of CO2 emission of 101 and 255g/km. The final tax band in the vehicle hierarchy is Tax Band M for vehicles which produce an eye-watering level of CO2 in excess of 255g/km.

For owners of a new car, models which fall within tax brackets A-D can enjoy zero rate tax for their first year of motoring. If the vehicle tax for a car falls within vehicle tax bands E to G, then the first year car tax band charges are the same as the standard annual car tax prices. For drivers who purchase a new vehicle falling within tax brackets H to M, the cost of the first year of vehicle tax is greater than the standard rate charged for these vehicle bands, up to a maximum 'first year rate' of £1,090. Current rates are shown in the table below.

Battery electric cars are exempt from car tax and also some 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
Petrol/Diesel
2014-2015
First year rate
Petrol/Diesel
2014-2015
Standard rate
Green car
2014-2015
First year rate
Green car
2014-2015
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 £290 £195 £280
I 176-185 g/km £225 £345 £215 £335
J 186-200 g/km £265 £485 £255 £475
K* 201-225 g/km £285 £635 £275 £625
L 226-255 g/km £485 £860 £475 £850
M Over 255 g/km £500 £1090 £490 £1080

*Includes cars emitting over 225g/km registered between 1 March 2001 and 23 March 2006.
Source: Budget 2014.




Car tax rates 2014-15

– Cars registered before March 2001 Return to top

For cars 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'.

Current rates for cars in this category are £145 for engines up to 1549cc and £230 for engines of 1550cc or larger – see table below.


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

VED Band Engine capacity (cc) All car types
2014-2015
N/A Up to 1549 cc £145
N/A Over 1549 cc £230

Source: Budget 2014.



Van tax rates 2014-15

– Vans registered since March 2001 Return to top

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 graduated according 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 (VED) or 'van tax'.

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 vehicle classification: N1 or N2 denotes a van as the vehicle will be taxed as such (cars are denoted M1 and 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 o the rear side panels; has a gross laden weight of over 1000 kg.


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

Fuel type Registration date Euro
standard  
Tax rate
2014-2015
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 2014.



Van tax rates 2014-15

– Vans registered before March 2001 Return to top

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'.

Current rates for vans in this category are £145 for engines up to 1549cc and £230 for engines of 1550cc or larger – see table below.


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

VED Band Engine capacity (cc) All car types
2014-2015
N/A Up to 1549 cc £145
N/A Over 1549 cc £230

Source: Budget 2014.




Latest car tax news


Post a commentReturn to top

blog comments powered by Disqus

 

Next Green Car logo

Mobile version