Will Your Car Tax Rise or Fall in 2010?

The government has changed the car tax (a.k.a. Vehicle Excise Duty/Road Tax) bands again this year. They’ve also introduced a ‘showroom tax’, which is basically a different rate of tax that you pay for a new car’s first year.

The idea behind the changes is to encourage people to buy new and used cars with lower CO2 emissions – but many owners of 3-6 year old cars may find that their car tax goes up as a result, too. To help you avoid any unpleasant surprises when your tax renewal letter arrives in the post this year, I’ve summarised the changes below and compared them with the current rates. I’ve also listed some popular new models in each band – scroll down for these.

(In case you can’t be bothered to look at the figures, here’s the deal. If your car emits less than 140g/km of CO2, your car tax will be cheaper in 2010 than it was in 2009. If your car emits more than 150g/km of CO2, your car tax will cost more in 2010 than in 2009.)

Remember, these rates only apply to cars registered after 1st March 2001 – older cars are subject to different rates:

VED Band CO2 emissions (g/km) 2009/10 Standard rate (£) 2010/11 First year rate (£) 2010/11 Standard rate (£)
A Up to 100 0 0 0
B 101-110 35 0 20
C 111-120 35 0 30
D 121-130 120 0 90
E 131-140 120 110 110
F 141-150 125 125 125
G 151-165 150 155 155
H 166-175 175 250 180
I 176-185 175 300 200
J 186-200 215 425 235
K* 201-225 215 550 245
L 226-255 405 750 425
M Over 255 405 950 435

*Includes cars emitting more than 225g/km of CO2 that were registered between 01/03/2001 and 23/03/2006.

Which Cars Are In Which Bands?

After reading all of this, you might be wondering which cars fall into which bands. Here are a few popular examples, taken from manufacturers’ current model lineups. All models have manual gearboxes unless specified:

Band A – Ford Fiesta ECOnetic
Band B – Ford Fiesta 1.4 TDCi, Toyota Yaris 1.4 D-4D (diesel)
Band C – Ford Ka, petrol and diesel models, Renault Megane dCi 106 models, BMW 116d
Band D – Renault Clio 1.2TCe (petrol), Volkswagen Passat Bluemotion 2.0 TDi 140
Band E – Peugeot 3008 HDi 110
Band F – Volkswagen Passat 2.0 TDi 110
Band G – Renault Megane 1.6 petrol models
Band H – Ford Focus 2.0i Duratec (petrol), BMW 330i SE coupé
Band I – Nissan Qashqai 2.0 4×2 (petrol)
Band J – Renault Espace dCi 150 models
Band K – Toyota Hilux 3.0 diesel
Band L – Ford Kuga 2.5l petrol AWD, Volkswagen Passat 3.6 V6 (petrol)
Band M – Nissan Pathfinder 2.5dCi 171, BMW M3 coupé

Please note: All details correct at the time of writing (E&OE). Car manufacturers are constantly tweaking the emissions of their popular models in an effort to have them classified in lower tax bands. Check before you buy.

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