Changes to Car Tax – Budget 2012

Changes to Car Tax – Budget 2012

In the March 2012 Budget, the Chancellor announced some changes to the rates of road tax for cars and other vehicles.  If you want an answer to the question ‘how much is my car tax’ then keep reading for the new rates from April 1st 2012.

Cars registered before 1 March 2001

If your car was first registered before 1 March 2001, there are only two bands of car tax.

If the engine size is under 1549cc, from 1st April 2012 you’ll pay £135 for 12 months tax and £74.25 for 6 months tax.  If the engine size is over 1549cc, you’ll pay £220 for 12 months tax and £121 for 6 months.

Cars registered after 1 March 2001

If your car registered after 1 March 2001, there are thirteen separate bands depending on the carbon dioxide (CO2) emissions of your car (measured in g/km).

If your car has emissions of less than 100 g/km CO2 emissions, you won’t pay any car tax.

The cost of your road tax then rises as the emissions rise, from 101 g/km to over 255 g/km.  You can find out the CO2 emissions of your car by checking the registration certificate or enquiring on the DVLA’s Electronic Vehicle Licensing website.

The information below shows the costs of car tax from 1 April 2012.  The cost depends on your band and whether you want 6 or 12 months tax.

  • Band A (up to 100 g/km) – No car tax payable
  • Band B (101 to 110 g/km) – £20 car tax per year (no 6 month option)
  • Band C (111 to 120 g/km) – £30 car tax per year (no 6 month option)
  • Band D (121 to 130 g/km) – £100 car tax per year or £55 for 6 months
  • Band E (131 to 140 g/km) – £120 car tax per year or £66 for 6 months
  • Band F (141 to 150 g/km) – £135 car tax per year or £74.25 for 6 months
  • Band G (151 to 165 g/km) – £170 car tax per year or £93.50 for 6 months
  • Band H (166 to 175 g/km) – £195 car tax per year or £107.25 for 6 months
  • Band I (176 to 185 g/km) – £215 car tax per year or £118.25 for 6 months
  • Band J (186 to 200 g/km) – £250 car tax per year or £137.50 for 6 months
  • Band K (201 to 225 g/km) – £270 car tax per year or £148.50 for 6 months
  • Band L (226 to 255 g/km) – £460 car tax per year or £253 for 6 months
  • Band M (over 255 g/km) – £475 car tax per year or £261.25 for 6 months

The biggest increases to the cost of road tax are in bands K, L and M.  Band K sees a £10 increase in the cost of 12 months tax while bands L and M see a £15 increase.  Bands D to J see an increase of £5 for 12 months tax.

Cars first registered after 1 April 2010

Brand new cars registered after 1 April 2010 with CO2 emissions of over 130 g/km attract a different rate of car tax in the first year.  For example, the tax on a brand new car with CO2 emissions of 170 g/km would be £275 in the first year, compared to £195 if the car was several years old.

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2 Responses to “Changes to Car Tax – Budget 2012”

  1. Rob M
    23. Mar, 2012 at 11:46 am #

    Why has car tax gone up again? And why this £5/£10/£15 increase?

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    • admin
      23. Mar, 2012 at 11:48 am #

      Rob – thanks for your question. The Chancellor can decide to set road tax at whatever level he wishes in the Budget. This year, he has confirmed that the cost of car tax will only rise by inflation – hence the £5, £10 and £15 rises.

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