Warning: Car Tax For A Cars’ First Registration Can Be More Expensive

Warning: Car Tax For A Cars’ First Registration Can Be More Expensive

Are you thinking of buying a new car?

If so, one thing to bear in mind is that the road tax for some cars when they are first registered is more expensive than it is in subsequent years.

Keep reading to find out which types of car are affected and how much additional road tax you will pay.

Increased car tax for new registrations

From 1 April 2010 new car tax rates came into force for cars first registered after that date.  In some tax bands it is now significantly more expensive to tax a car for the first time.

All subsequent tax discs will be charged at the standard rates.

However, while the cost of a tax disc was increased for many cars, some tax bands actually benefit from reduced road tax in the first year.  Our guide explains the various differences between tax disc costs for first and subsequent registrations.

Cars in tax band A

Cars in tax band A are those with CO2 emissions of under 100 g/km.  As no road tax is payable for these vehicles the rates are always ‘zero’ in the first and subsequent years.

Cars in tax bands B – D

When you first register a car in tax band B, C or D (cars with CO2 emissions of between 101 and 130 g/km) you actually won’t pay any car tax for the first year.

You will then pay the standard road tax appropriate to your car’s band from the second year onwards (currently £20, £30 or £95 depending whether your car is in Band B, Band C or Band D).

Cars in tax bands E – G

Cars in tax bands E, F and G (cars with CO2 emissions of between 131 and 165 g/km) incur the same road tax at first registration as they do in subsequent years.  This is currently £115, £130 and £165 for 12 months’ tax for bands E, F and G respectively.

Cars in tax bands H – M

If your car is in tax band H to M (cars with CO2 emissions over 166 g/km) you will pay a higher level of road tax at first registration than you will in subsequent years.

The current (2011/12) rates are (all figures are for 12 months’ tax):

  • Band H – First registration £265                Subsequent registration £190
  • Band I – First registration £315                 Subsequent registration £210
  • Band J – First registration £445                 Subsequent registration £245
  • Band K – First registration £580                Subsequent registration £260
  • Band L – First registration £790                 Subsequent registration £445
  • Band M – First registration £1,000           Subsequent registration £460

If you’re not sure what the emissions of your new car are you should check with your salesperson or with the dealership.  For cars you have recently purchased you can check your V5C (Registration Certificate) or enter the make and registration number of your car into the ‘online vehicle enquiry’ section of the DVLA website.

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2 Responses to “Warning: Car Tax For A Cars’ First Registration Can Be More Expensive”

  1. Steve F
    04. Dec, 2011 at 7:12 pm #

    The car I am thinking of buying is in a high tax band. Is it possible to buy 6 months tax at first registration in order to reduce the cost?

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    • admin
      04. Dec, 2011 at 7:15 pm #

      Steve – that is a great question.

      The answer is ‘no’. 6 month tax discs are not available for cars in the bands that charge a different tax rate at first registration. Cars in bands A to D can’t apply for a 6 month disc because no road tax applies to them anyway. And, you can only buy 12 month tax discs for cars in bands H to M as the cost at first registration is higher.

      The only cars that you can buy a 6 month tax disc for on first registration are cars in bands E to G.

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