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Car Tax Rates 2020

All you need to know about the latest Car Tax Bands

Car Tax Rates reflect changing transport trends and Government policy towards vehicle pollution. Current Car Tax bands mean you’ll generally pay a different amount in the first year of ownership than for the second year and onwards.

Car Tax rates are based on your vehicle’s emissions as well as the list price. Did you know Electric vehicles are exempt in both cases? At Brayleys Cars, we want to save you money on your motoring and your car tax. We’ve put together the information you need to know on how much Car Tax you’ll pay in 2020 in this handy guide. To find out more about road tax costs on any new or used car, just contact our friendly sales team.

The latest car tax rates

The latest car tax rates came into force from 1st April 2020. The changes are based around taking the new WLTP (Worldwide Harmonised Light Vehicle Test Procedure) fuel economy tests as the source for CO2-emissions data. These are considered to be more accurate than the NEDC (New European Driving Cycle) tests that were formerly used. In general, this greater accuracy shows increases in CO2 emissions for most cars, possibly by some 20%. That means you may have to pay more than before in the first year of ownership of a new car.

You will pay a different amount in your first year of ownership of your new car. For the second year and onwards, many people will pay a higher rate. The rate you pay is based on the original purchase price of your car and the type of fuel it uses.

If your car was first registered before 1st March 2001, engine size will dictate how much car tax you have to pay. From 1st March 2001, the car tax you pay will be based on CO2 emissions and fuel type.

You need to pay tax when the car is first registered, covering the vehicle for 12 months. The tax rate is based on the vehicle’s CO2 emissions.  A higher tax band applies to diesel cars that do not meet the Real Driving Emissions 2 (RDE2) standard for nitrogen oxide emissions.  

Currently vehicles with 0g/km CO2 emissions – Electric Vehicles, are exempt from Car Tax. This includes the first 12 months as well as for the second year and onwards.

Here are the updated Car Tax Bands for the first 12 months, as published on the government’s website:

CO2 EmissionsDiesel cars (TC49) that meet the RDE2 standard and petrol cars (TC48)All other diesel cars (TC49)Alternative fuel cars (TC59)
0g/km£0£0£0
1 to 50g/km£10£25£0
51 to 75g/km£25£110£15
76 to 90g/km£110£135£100
91 to 100g/km£135£155£125
101 to 110g/km£155£175£145
111 to 130g/km£175£215£165
131 to 150g/km£215£540£205
151 to 170g/km£540£870£530
171 to 190g/km£870£1,305£860
191 to 225g/km£1,305£1,850£1,295
226 to 255g/km£1,850£2,175£1,840
Over 255g/km£2,175£2,175£2,165

In the second year and onwards, there are three Car Tax Bands depending on the vehicle type:

Fuel typeSingle 12 month paymentSingle 12 month payment by Direct DebitTotal of 12 monthly payments by Direct DebitSingle 6 month paymentSingle 6 month payment by Direct Debit
Petrol or diesel£150£150£157.50£82.50£78.75
Electric£0N/AN/A£0N/A
Alternative£140£140£147£77.00£73.50

In the case of vehicles with a list price over £40,000 (the manufacturer’s published price before discounts) there is an extra tax due every year, for 5 years.

There are two bands, depending if you have a petrol / diesel car or an alternative fuel vehicle. Zero emissions vehicles are also exempt from this extra payment.

Vehicles with a list price over £40,000:

Fuel TypeSingle 12 month paymentSingle 12 month payment by Direct DebitTotal of 12 monthly payments by Direct DebitSingle 6 month paymentSingle 6 month payment by Direct Debit
Petrol or diesel£475£475£498.75£261.25£249.38
Alternative£465£465£488.25£256£244.13

Pay No Car Tax

Unless you have declared a SORN, Statutory Off Road Notification, for your car, you must pay car tax on and insure all cars you own, even if your car is not being driven and is kept off road. There’s one big exception – electric cars.

Cars like the Renault ZOE and Twizy, the Honda e, the Kia e-Niro and Soul EV, and the Mazda MX-30 are all 100% electric. That means you save on fuel costs and you currently have to pay no road tax.

The other main exception is if you’re disabled. If you receive certain benefits, you may be entitled to pay no road tax or a reduced amount. You could also be eligible for the Motability scheme. Brayleys Cars is proud to support the scheme and offers a range of Motability offers.

Even if you are exempt from paying for your road tax, you must still go through the process of taxing your vehicle to claim the exemption.

Car Tax Reductions

One of the main focuses of the government’s car tax strategy is to increase tax costs for higher-polluting cars. To find out more about road tax costs on any new car or on any of our range of quality used cars, just contact our friendly sales team.

Hybrid cars are a brilliant half-way house between the traditional internal combustion engine and going all-electric. They attract a reduced car tax rate in the first year and an ongoing discount. Brayleys offers a range of Plug-in Hybrid, Mild Hybrid and Self-charging Hybrid cars. With both an electric motor and an internal combustion engine, they offer great performance, exceptional range and reduced emissions.

Avoiding really high car tax

Avoid cars with high CO2 emissions: Rates rise through several tax bands as emissions increase. For example, if your new car has CO2 emissions of over 255g/km, you could be paying up to £2,175 in your first year of ownership.

Avoid cars with a list price of over £40,000: For the first five years of ownership, you’ll have to pay an extra £325 a year in road tax.

Avoid diesel cars that don’t meet RDE2 standards: Real Driving Emissions 2 is the standard for nitrogen oxide emissions. If your car doesn’t meet this standard, you can expect to pay more car tax.

Everything you need to know about car tax bands at Brayleys

To find out more about car tax rates 2020, please call us or send us a road tax cost enquiry