Understanding Car Tax: A Comprehensive Guide for You
Car tax, also known as vehicle tax or road tax, is a mandatory fee that vehicle owners must pay to legally drive their cars on public roads. This guide will delve into the various aspects of car tax, including how it is calculated, who is required to pay it, and the implications of not paying it. Whether you are a new car owner or simply curious about the intricacies of car tax, this article will provide you with all the information you need.
How Car Tax is Calculated
Car tax is calculated based on the CO2 emissions of your vehicle. The higher the emissions, the higher the tax. The UK government has set a standard rate and a premium rate for car tax. The standard rate is 拢140 per year, while the premium rate varies depending on the vehicle’s CO2 emissions. Here is a table that outlines the different bands and their respective rates:
| CO2 Emissions (g/km) | Standard Rate | Premium Rate |
|---|---|---|
| 1 – 50 | 拢140 | 拢2,000 |
| 51 – 100 | 拢140 | 拢1,500 |
| 101 – 110 | 拢140 | 拢1,000 |
| 111 – 130 | 拢140 | 拢500 |
| 131 – 140 | 拢140 | 拢350 |
| 141 – 160 | 拢140 | 拢250 |
| 161 – 170 | 拢140 | 拢200 |
| 171 – 180 | 拢140 | 拢150 |
| 181 – 190 | 拢140 | 拢100 |
| 191 – 225 | 拢140 | 拢50 |
| 226 – 255 | 拢140 | 拢0 |
| Over 255 | 拢2,000 | 拢0 |
It is important to note that if your car is registered as a new vehicle on or after 1st April 2017, it will be subject to the first-year rate, which is usually higher than the standard rate. The first-year rate is calculated based on the car’s list price and can be as high as 拢2,000.
Who is Required to Pay Car Tax
Every vehicle that is driven on public roads in the UK must be taxed, except for those that are exempt. This includes cars, motorcycles, and other types of vehicles. If you are the registered keeper of a vehicle, you are responsible for ensuring that it is taxed. Here are some scenarios where you may be required to pay car tax:
- You are the registered keeper of a vehicle.
- You have imported a vehicle from abroad.
- You have inherited a vehicle.
- You have purchased a vehicle from a dealer.
It is important to remember that if you do not pay car tax, you may face penalties and fines. The penalties can range from a 拢1,000 fine for not displaying a valid tax disc to a 拢1,000 fine for not paying the tax itself.
