For most people, road tax is an unavoidable aspect of car ownership, and it seems like the rules change on an annual basis, with the government trying to squeeze as much cash as possible from motorists when they buy a new car.

On 1 April 2019, the latest set of changes to road tax for new cars came into force. This saw the existing VED band structure adjusted for inflation, with tax rates on the rise in almost all areas. Auto Express has looked at the numbers, and here you can check exactly how much you’ll pay in road tax for your next new car.

Company car tax rules explained

How much road tax will I pay?

If you buy a new car, the car’s price isn’t just what the manufacturer expects you to pay for it, as there are additional costs included. There’s VAT, which charged at 20 per cent, for starters, and there’s a registration fee – for the number plates and getting the V5C from the DVLA – and any delivery charges that the dealer will also add. Plus, there’s road tax, which is officially called Vehicle Excise Duty (VED), as it hasn’t been used to pay for road maintenance for many years – though the Government recently announced it would ring-fence VED for roads, so the ‘road tax’ colloquialism holds more water than before.

VED for the first year of a car’s registration is calculated differently to the rest of its life. You can find out about how much you’ll pay through a car’s life here. But in this article, we’re concentrating on the amount buyers will pay as part of a new car’s ‘on-the-road’ costs.

The best tax-free cars 2018

For the first year, VED is calculated on the car’s carbon dioxide (CO2) emissions. However, recent changes have seen The Treasury raise the amount of first-year road tax for diesel cars that don’t meet the latest emission standards. Our table shows how much you’ll pay if you buy a new car today:

VED tax bands: 1 April 2017 onwards

VED car tax bands for cars first registered from 2017 onwards
Emissions (g/km of CO2) Diesel cars meeting RDE2 and petrol cars first-year rate All other diesels first-year rate Alternative-fuel vehicle first-year rate Standard petrol/diesel annual rate Standard alternative fuel annual rate
0 £0 £0 £0 £0 £0
1-50 £10 £25 £0 £145 £135
51-75 £25 £110 £15
76-90 £110 £130 £100
91-100 £130 £150 £120
101-110 £150 £170 £140
111-130 £170 £210 £160
131-150 £210 £530 £200
151-170 £530 £855 £520
171-190 £855 £1,280 £845
191-225 £1,280 £1,815 £1,270
226-255 £1,815 £2,135 £1,805
Over 255 £2,135 £2,135 £2,125
Cars above £40,000 pay £320 annual supplement for five years from the second year of registration.

So all new cars that emit more than 75g/km of CO2 have seen a bump up in their first-year road tax costs. In addition, diesel cars that fail to meet RDE2 emissions standards move up one road tax band when compared to their ‘clean’ counterparts. The last major set of road tax changes in April 2017 saw a fixed rate of road tax applied to cars after their first year of registration, and these new VED rates are not retrospective so can’t be applied to older cars.

What is a non-RDE2 diesel?

A diesel that fails to meet the latest emission RDE2 emission standards sit one band higher for the first-year tax rate. Note there is no annual VED increase for diesels, regardless of whether they meet RDE2. All new cars on sale in the UK already conform to the current Euro 6 emissions standards, and they are tested in laboratory conditions to meet this standard, but RDE2 – along with WLTP – is making the requirements even stricter for real-world driving.

Read more about the UK’s VED road tax system here…



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