Car tax bands 2017/18

car tax bands 2017/18

Car tax - also known as Vehicle Excise Duty (VED) - has just undergone a shake-up, with new rules from April 2017 onwards. For new cars registered from April 2017 car tax rates are based on 13 bands, each defined by a range of tailpipe CO2 emissions as measured on the official test, and the car's list price.

For cars registered between March 2001 and March 2017, VED continues to be calculated from 13 car tax bands (A to M), each 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 rates 2017/18 – Cars reg since April 2017

The new car tax system divides vehicles registered from 1st April 2017 into one of three segments after its first year on the road – zero-emission, standard, and premium. Alternative fuel vehicles will continue to receive a £10 reduction on vehicle tax rates.

12-month Vehicle Excise Duty rates for new cars registered from 01 April 2017

Vehicle
CO2 emissions
First year rate (FYR)
2017-2018
Standard rate (SR)*
2017-2018
Premium rate (PR)**
2017-2018
0 g/km £0 £0 £310
1-50 g/km £10 £140 £450
51-75 g/km £25 £140 £450
76-90 g/km £100 £140 £450
91-100 g/km £120 £140 £450
101-110 g/km £140 £140 £450
111-130 g/km £160 £140 £450
131-150 g/km £200 £140 £450
151-170 g/km £500 £140 £450
171-190 g/km £800 £140 £450
191-225 g/km £1200 £140 £450
226-255 g/km £1700 £140 £450
Over 255 g/km £2000 £140 £450

*Standard rate applies from year two onwards to cars with a list price up to but not including £40,000.
**Premium rate applies from year two to year six to cars with a list price of £40,000 or more.
Sources: Budget 2015, Budget 2016, DVLA 2017.

For vehicles registered from 01 April 2017 onwards, car tax for the first 12 months is covered by a first year rate (FYR) which is directly linked to the car's CO2 emissions. Only zero-emission vehicles are eligible for zero VED, with ultra low emission vehicles (ULEVs) charged £10 or £25 depending on emissions. However, since CO2 Bands 1-50 g/km and 51-75 g/km are only populated with alternatively fuelled models like PHEVs and hybrids, these FYRs will have the £10 discount applied. This means the greenest PHEVs will pay zero FYR and the rest will be charged £15.

After a car's first year on the road, the three category system comes into place: zero-emission, standard, and premium. Zero-emission cars will be exempt from VED. The Standard Rate (SR) will apply to cars with a list price of less than £40,000, and will be charged at a standard rate of £140 no matter what their emissions - unless they qualify for the £10 Alternative Fuel Discount.

A Premium Rate (PR) will apply to cars with a list price of £40,000 or more. The Premium Rate applies from the second year for five years, consists of the Standard Rate - with or without £10 alternative fuel discount - plus an additional cost of £310; the rate reverting to the standard rate after five years.

Note that the Premium Rate applies to all cars with a list price of £40,000 or more, including zero-emission vehicles. List price is defined as the retail price published by the manufacturer before the cehicle is passed to the dealer for registration. This includes the purchase price of any non-standard options, VAT, the purchase price of an battery for an EV even if leased, delivery charges to the dealership, plus any pre-delivery inspection charges. It is not the same as the OTR price, which includes VED and the first year registration fee.

Search for cars by tax band here. Alternatively, individual model pages from the New Car Search and Used Car Search also provide information on your car's VED tax band.

Car tax rates 2017/18 – Cars reg between March 2001 and March 2017

12-month Vehicle Excise Duty rates for cars registered between March 2001 and March 2017*

VED Band Vehicle
CO2 emissions
Standard rate
2016-2017
First year rate
2016-2017
Standard rate
Green car
2016-2017
First year rate
Green car
2016-2017
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 £185 £185 £175 £175
H 166-175 g/km £210 £300 £200 £290
I 176-185 g/km £230 £355 £220 £345
J 186-200 g/km £270 £500 £260 £490
K* 201-225 g/km £295 £650 £285 £640
L 226-255 g/km £500 £885 £490 £875
M Over 255 g/km £515 £1120 £505 £1110

*Includes cars emitting over 225 gCO2/km registered between 1 March 2001 and 23 March 2006. Source: Budget 2016.

For cars registered between March 2001 and March 2017, car tax bands are labelled by letter, with tax band A referring to cars that have CO2 emissions 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.

As an incentive to buy cars with low CO2 levels, the Standard Rates increase in line with emissions. VED rates range from zero for cars emitting up to 100 g/km CO2, to £535 for those emittig more than 255 g/km CO2. Alternatively fuelled cars such as hybrids are eligible for the £10 discount.

Car tax rates 2017/18 – Cars reg before March 2001

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

VED Band Engine capacity (cc) All car types
2016-2017
N/A Up to 1549 cc £145
N/A Over 1549 cc £235

Source: Budget 2016.

For cars registered before March 2001, car tax is calculated according to engine size, since CO2 emission data is generally not available.

Van tax rates 2017/18 – Vans reg since March 2001

This section covers 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 £230 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 for 12 months. 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
2016-2017
Diesel, Petrol, LPG, CNG On or after 01 March 2001 N/A £230
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 2016.

Van tax rates 2017/18 – 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 £150 for engines up to 1549cc and £235 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
2016-2017
N/A Up to 1549 cc £145
N/A Over 1549 cc £235

Source: Budget 2016.

Chris Lilly

Author:Chris Lilly
Date Updated:17th Mar 2016

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