04 April 2013 by Julian Kirk Last Updated: 19 Mar 2014

  • VED rates will rise in line with inflation for 2014/2015
  • 2014 Budget confirms paperless tax disc system
  • See below for current 2013/2014 rates

The 2014 Budget has announced that VED bands will remain the same and that road tax rates will increase in line with the Retail Prices Index (RPI) of just over 2 per cent .

The new rates for 2014/2015 can be found here . See below for the current 2013/14 rates which still apply until April 1 2014.

Road tax rates from April 1, 2013

VED Band CO2 Emissions Annual rate First year rate
A Up to 100 £0 £0
B 101-110 £20 £0
C 111-120 £30 £0
D 121-130 £105 £0
E 131-140 £125 £125
F 141-150 £140 £140
G 151-165 £175 £175
H 166-175 £200 £285
I 176-185 £220 £335
J 186-200 £260 £475
K 201-225 £280 £620
L 226-255 £475 £840
M Over 255 £490 £1,065

To find out the first year (Showroom) and on-going car tax costs for your car use the Parkers road tax calculator here.

The rises in the rates of the tax, known as Vehicle Excise Duty (VED), are linked to the Retail Prices Index (RPI) and equate to modest rises across the board.

The only exception is for heavy goods vehicles (HGVs), which see their VED rates frozen for 2013/14. The alternative fuel discount remains unchanged at £10. The new charges apply from April 1, 2013.

To aid this period of stability, the Government announced in the Budget that it has ‘no plans to make significant reforms’ to the structure of VED for cars and vans in this Parliament. This means RPI-linked increases in VED for the next two years at least.

The inflation-linked price rises apply to both the standard VED rate and also to the first year rate, or so-called showroom tax, which applies to brand new vehicles.

For vehicles with CO2 emissions of up to 130g/km, the first year rate remains at zero. Vehicles with CO2 emissions ranging from 131g/km to 165g/km will see the first year rate rise by £5, while for vehicles with emissions ranging from 166g/km to 185g/km the increase is £10.

In the 186g/km to 200g/km range the increase is £15, from 201g/km to 225g/km it rises by £20, from 226g/km to 255g/km VED increases by £25 while in the top banding (over 255g/km) the first year rate rises from £1,030 to £1,065.

The standard rate of VED remains unchanged for vehicles emitting up to 120g/km. There then follows £5 increases in every band up to 185g/km. Vehicles with CO2 emissions ranging from 186g/km to 225g/km are subject to a £10 rise, while there is a £15 increase for vehicles in the 226-255g/km range.

In the top band for vehicles emitting more than 255g/km, the standard rate of VED rises from £475 to £490.

The VED rises also apply to older vehicles which are subject to a different regime. Vehicles registered before March 1, 2001, have their tax based on engine size, with engines up to 1,549cc in capacity now costing £140 per year (2012/12: £135).

There is also a £5 increase (to £225 per year) for cars with an engine capacity of 1,549cc or more.

 

Examples: How the VED changes affect popular cars

1) Volkswagen Polo 1.2 (70) S 5dr

CO2 emissions: 128g/km

VED band: D

Year

First Year rate

Standard rate

2012/13

£0

£100

2013/14

£0

£105

 

2) Ford Focus 1.6 (105) Zetec 5dr

CO2 emissions: 136g/km

VED band: E

Year

First Year rate

Standard rate

2012/13

£120

£125

2013/14

£120

£125

 

3) Vauxhall Zafira Tourer 2.0 CDTi (165) SRi auto

CO2 emissions: 159g/km

VED band: G

Year

First Year rate

Standard rate

2012/13

£170

£170

2013/14

£177

£175

 

4) Land Rover Discovery 4 3.0 SDV6 GS auto

CO2 emissions: 230g/km

VED band: L

Year

First Year rate

Standard rate

2012/13

£815

£460

2013/14

£840

£475

 

Want to know the VED band and road tax costs for your car? Click here to find out.