View our budget-beating slide show – the cheapest cars to tax

How will the tax system work in 2009?

Like the current tax system, cars registered after March 1, 2001 will be placed in tax bands depending on how much CO2 they emit – and six new bands have been added for the most-polluting vehicles.

Amendments from the Pre-Budget report means motorists will only pay a maximum of £5 more in 2009, or see their tax costs decrease. From 2010 a maximum increase of £30 has been announced.

How much will it cost?

Here are the revised car tax prices for April 2009 to March 2010, with example cars:

Check your vehicle handbook for your car’s exact CO2 emission figure and use the table to find out how much it’ll cost to tax next year.

How much extra road tax will you pay?

What changes will be made in 2010?

If you buy a new car after April 1, 2010, you'll have to pay a first-year rate – or ‘showroom tax’ – based on CO2 emissions.

New cars which emit less than 130g/km of CO2 will be exempt from car tax for the first year, but more polluting cars will have higher fees. For example it’ll cost £950 to tax a vehicle which emits more than 255g/km for the first year, then £430 each year thereafter.

Prices will be revised for the 2010 rate to the following:

Everything you wanted to know about car tax – the current system

Are there any exemptions for annual road tax?

Yes – the following are exempt from road tax:

• Any car which emits less than 100g/km of CO2 (band A vehicles)
• Electric cars
• Motorists who declare Statutory Off Road Notification, or SORN – if your car won’t be used or parked on a public road for a year
• Disabled drivers with exemption certificate DLA404
• Motorists who receive the War Pensioner's Mobility Supplement and have a WPA442 form
• Vehicles registered before January 1, 1973

What if my car was registered before March 1, 2001?

Cars registered between January 1, 1973 and March 1, 2001 will still have their tax calculated according to engine size:

• Cars under 1549cc cost £115 per year
• Cars over 1549cc cost £200 per year (up from the current price of £180)

More FAQs

Q: Do alternative fuel vehicles receive a discount?
A: Yes, £20 if the car falls between bands A-I, or £15 for bands J-M. From April 2010 this discount will drop to £10 for all bands.

Q: How do I apply for tax?
A: Visit the DVLA’s tax disc website and follow the instructions or call 0845 850 4444.

Q: What if I forget to renew my current tax disc?
A: A V11 reminder form will be sent out to you three weeks before the expiry date.

Q: Can my tax band change?
A: Yes. Your car’s tax band may change if any modification or fuel type alterations are made. This will require a tax disc exchange – ask for a V70 form from the DVLA.

Q: Is it cheaper to buy a six-month or twelve-month tax disc?
A: 12-month tax discs are slightly cheaper. View our money-saving tax tip for more information.

Q: What happens if I move house or change my landline phone number?
A: Contact the DVLA and inform them of any change to personal information.

Q: I’ve lost my tax disc! What should I do?
A: If your disc is misplaced, damaged or faded, fill in a V20 DVLA form for a replacement.

For more information read our advice on new road tax prices and the current car tax system.

View our budget-beating slide show – the cheapest cars to tax

How much will it cost  to tax YOUR car? Have your say on the Auto Trader Blog