Vehicle Tax & ULEZ Guide
Everything you need to know about UK road tax, emission zones, and the costs of vehicle ownership. Make informed decisions based on tax bands and ULEZ compliance.
Understanding Vehicle Tax (VED)
Vehicle Excise Duty (VED), commonly called road tax or car tax, is an annual charge for keeping a vehicle on UK roads. The amount you pay depends on your vehicle's CO₂ emissions, registration date, list price, and fuel type.
Tax rates change based on government policy, so always check current rates when budgeting for a vehicle. Electric and low emission vehicles benefit from reduced or zero rates to encourage cleaner transport.
Tax Bands by Registration Date
Registered before March 2001
Tax based on engine size only. Under 1549cc pays around £200-210 annually. Over 1549cc pays around £315-330. Simple system with just two bands regardless of emissions.
Registered March 2001 to March 2017
Tax based on CO₂ emissions with 13 bands from A to M. Band A (under 100g/km) is free. Band M (over 255g/km) costs £735 for first year, then £385 annually. Lower emissions mean lower tax.
Registered after April 2017
First year rate based on CO₂ emissions (£0 to £2,745). From year two, most vehicles pay standard rate of £190 annually. Vehicles over £40,000 when new pay additional £410 supplement for five years (total £600 yearly).
Electric vehicles (all dates)
Zero emission vehicles currently pay £0 road tax. This changes from April 2025 when EVs will pay standard rate. Plug-in hybrids pay reduced rates based on emissions and electric range.
High Value Vehicle Supplement
Cars with a list price over £40,000 when new pay an extra £410 annually for five years (years 2-6). This applies regardless of current market value. Total annual tax becomes £600 for these vehicles during the supplement period.
What counts towards £40,000
Original manufacturer list price including factory-fitted options and delivery charges. Doesn't include aftermarket modifications or current used value. Check V5C or contact DVLA if unsure about original price.
Exemptions from supplement
Zero emission vehicles are currently exempt from the expensive car supplement. This exemption ends April 2025. Pre-2017 vehicles never pay the supplement regardless of original price.
ULEZ (Ultra Low Emission Zone)
ULEZ operates 24/7 in Greater London, charging vehicles that don't meet emission standards. Daily charge is £12.50 for cars, vans, and motorcycles. No annual cap, so frequent London drivers face substantial costs.
ULEZ compliant vehicles
Petrol cars meeting Euro 4 standard (typically registered after 2005). Diesel cars meeting Euro 6 standard (typically registered after September 2015). All electric and hydrogen vehicles are exempt.
Non-compliant vehicles
Most diesel cars registered before 2016. Older petrol cars from before 2006. Pay £12.50 every day driven in zone. Annual cost could exceed £4,500 for daily commuters.
ULEZ zone coverage
Expanded to cover all London boroughs in August 2023. Includes areas inside M25 motorway (but not M25 itself). Check TfL website with your registration to verify compliance status.
Payment and penalties
Pay online by midnight the next day. Automatic payment available via Auto Pay. Penalty for non-payment starts at £180 (reduced to £90 if paid within 14 days). Cameras enforce automatically.
Other UK Emission Zones
Clean Air Zones (Birmingham, Bradford, etc.)
Several UK cities operate Clean Air Zones with varying standards. Birmingham charges non-compliant cars £8 daily. Bath charges £9 daily. Check local authority websites for specific requirements and exemptions.
Congestion Charge (Central London)
Separate from ULEZ, charging £15 daily to drive in central London (Mon-Fri 7am-6pm, weekends 12pm-6pm). Some vehicles exempt including electric cars and residents with 90% discount. Both charges apply if driving in overlap area.
Electric Vehicle Benefits
Current tax advantages
Zero road tax until April 2025. Exempt from ULEZ and Congestion Charge in London. Lower company car tax for business users. Government grants available for home charger installation.
Changes from April 2025
EVs will start paying standard road tax rate (currently £190). Expensive EVs over £40,000 will pay supplement. Still exempt from ULEZ and emission zone charges. Benefits remain substantial compared to petrol/diesel.
Total cost comparison
Despite upcoming tax changes, EVs typically cheaper to run. Lower fuel costs (electricity vs petrol), reduced servicing needs, exemption from emission zones. Calculate five-year total cost including purchase price for true comparison.
Tax Exemptions
Disability exemptions
Vehicles registered with DVLA as used by disabled person are exempt. Must display blue badge when parked. Apply through DVLA with supporting medical evidence. Exemption also covers some mobility allowance recipients.
Historic vehicles
Vehicles over 40 years old qualify for historic vehicle status. Exempt from road tax and MOT testing. Must be substantially original specification. Age calculated from date of manufacture, not first registration.
Agricultural and special vehicles
Agricultural tractors, road rollers, and certain specialist vehicles exempt. Must be used only for specific purposes. Standard cars never qualify even if used on farm. Apply for correct vehicle class through DVLA.
Money-Saving Tips
- Buy pre-2017 vehicles with low CO₂ to avoid expensive car supplement
- Consider ULEZ compliance if you live or work in Greater London
- Pay annually rather than monthly to save around 5% on road tax
- Check exact CO₂ rating as 1g/km difference can change tax band significantly
- Research similar models from different years for tax rate variations
- Factor emission zone charges into total ownership costs
- Consider hybrid or electric if you regularly drive in Clean Air Zones
How to Check and Pay
Check your vehicle tax
Visit GOV.UK and enter your registration. See current tax status, expiry date, and annual cost. Also shows SORN status and whether vehicle is taxed. Use MOTCompare to check tax status alongside MOT history.
Payment options
Pay online, by phone, or at Post Office. Annual payment cheapest. Monthly Direct Debit available with 5% surcharge. Automatic renewal sends reminder 14 days before expiry. Keep V5C reference number handy.
Penalties for no tax
Automatic £80 fine for expired tax. Clamping or vehicle removal possible. Insurance may be invalid without tax. Use SORN (Statutory Off Road Notification) if not using vehicle to avoid penalties.
Check Your Vehicle Details
Use MOTCompare to check tax status, emissions data, and full vehicle history in one place.
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