How much will you be paying on your car tax, or Vehicle Excise Duty (VED), in 2011/2012? That depends on how much carbon dioxide your car emits and where that places it in the VED Bands for 2011.
The latest rates for 2013/2014 can be found here.
VED Bands Explained
Last year the VED Bands were overhauled. More bands were introduced, up from seven to thirteen, and a new first year rate was introduced for new cars (dubbed the ‘showroom tax’).
How much your car tax disc costs depends on the age or carbon dioxide (CO2) emissions of the car. If your car was registered before March 2001 then the tax rate will be determined by engine size. Alternatively, it will have been allocated an emissions rating according to strict EU tests and it is that figure that determines which VED band it falls into.
The first year rate only applies if you are buying the car brand new, and includes the cost of the car tax and an additional ‘green’ tax. The idea here is that buyers of iceberg-melting supercars pay a penalty when they buy the car, in theory tempting them to buy something more fuel efficient. When the time comes to renew the tax disc after a year the cost will revert to te standard rate.
As of April 2011 the rates are increasing, as they do every year. But not all rates are going up … if you’re driving around in a low emitter then you may find that your VED stays the same.
VED Tax Rates For 2011/2012
The table below shows you all of the VED bands, and allows you to compare the car tax rates from 2010/2011 with the new ones for 2011/2012 that come into effect on April 1st 2011.
Has your car tax gone up this year?
| VED Band | CO2 Emissions (g/km) | 2011/12 standard rate | 2011/12 first year rate | 2010/11 standard rate |
|---|---|---|---|---|
| A | Up to 100 | 0 | 0 | 0 |
| B | 101 – 110 | £20 | 0 | £20 |
| C | 111 – 120 | £30 | 0 | £30 |
| D | 121 – 130 | £95 | 0 | £90 |
| E | 131 – 140 | £115 | £115 | £110 |
| F | 141 – 150 | £130 | £130 | £125 |
| G | 151 – 165 | £165 | £165 | £155 |
| H | 166 – 175 | £190 | £265 | £180 |
| I | 176 – 185 | £210 | £315 | £200 |
| J | 186 – 200 | £245 | £445 | £235 |
| K* | 201 – 225 | £260 | £580 | £245 |
| L | 226 – 255 | £445 | £790 | £425 |
| M | over 255 | £460 | £1000 | £435 |
Hot Hatches And Car Tax
OK, so seeing as Driving Spirit is all about hot hatches lets look at some examples with a variety of engine sizes.
| Model | Engine | C02 g/km | VED Band | First Year Rate | Standard Rate |
|---|---|---|---|---|---|
| Ford Focus ST | 2.5 Turbo | 224 | K | n/a | £260 |
| Suzuki Swift Sport | 1.6 | 165 | G | £165 | £165 |
| Volkswagen Golf GTI V | 2.0 Turbo | 189 | J | n/a | £245 |
| Volkswagen Golf GTI VI | 2.0 Turbo | 170 | H | £265 | £190 |
| Vauxhall Corsa VXR | 1.6 Turbo | 172 | H | £265 | £190 |
What these examples clearly show is that hot hatches are not going to qualify for a free tax disc any time soon. However, notice how the Golf GTI Mk6 has dropped two bands over its predecessor, and that it now costs the same as the Corsa VXR, despite the Corsa only having a 1.6-litre engine. This shows how manufacturers are making engines more efficient, or at the very least they’re making them better at passing the EU emissions tests (which are nowhere near real-world driving). Notice too how the thirsty 2.5-litre engine in the outgoing Focus ST hits owners hard.
Cars Registered Before March 2001
In March 2001 the VED system switched to the banding based on CO2 emissions. Prior to that a lot of cars hadn’t been rated for emissions, so a simple system was introduced based on engine size.
| Engine Capacity | 2010/2011 Tax Rate |
|---|---|
| 1,549cc or less | £125 per year |
| Over 1,549cc | £205 per year |