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Car tax changes due in April 2020

Car tax is set to change from April 2020, find out what is changing and why.

The amount you will pay in car tax will change from 6 April 2020, with both petrol and diesel vehicles set to cost more if purchased after this date.

This will impact both personal and company vehicles, respectively known as Vehicle Excise Duty (VED) and Benefit in Kind (BiK).

The amount of car tax that you pay is based on the vehicles CO2 emissions. Larger engines produce higher levels of CO2, meaning you pay more tax on them. This will remain the same. However, how CO2 emissions are calculated is being changed.

Previously the old way of measuring emissions was by using the New European Driving Cycle (NEDC) moving forward emissions will be measured using Worldwide Harmonised Light Vehicle Test Procedure. This method of testing is more rigorous than its predecessor and will give higher g/km CO2 emission levels than under the previous method.

From 6 April 2020, vehicle tax amounts due will be calculated using the Worldwide Harmonised Light Vehicle Test Procedure. Vehicles tested under this method are likely to record higher emissions and be liable for more tax.

If you are thinking of purchasing a vehicle over the next few months you might want to purchase before the changes take effect. As the same vehicle purchased in April could end up costing you more in car tax than if you purchased the same vehicle in March.

How much will I pay.

What the changes will mean for you. Using the table below, you will be able to calculate which tax band your vehicle would be in if you were to purchase after 6 April 2020.

VED BandCO2 Emissions (g/km)First-Year RateFirst-Year Rate for non-RDE2 DieselsAlternative Fuel Vehicles
A0£0 £0£0
BJan-50£10£25£0
C51 - 75£25£110£15
D76 - 90£110£130£100
E91 - 100£130£150£120
F101 - 110£150£170£140
G111 - 130£170£210£160
H131 - 150£210£530£200
I151 - 170£530£855£520
J171 - 190£855£1,280£845
K191 - 225£1,280£1,815£1,270
L226 - 255£1,815£2,135£1,805
MOver 255 £2,135£2,135£2,125

Are any vehicles exempt from tax?

Yes! If your vehicle was manufactured before 1st January 1979, it will be exempt from VED. These models are known as historic vehicles. Some electric vehicles and disabled passenger models may also be exempt.

Find out which vehicles are exempt from VED by visiting https://www.gov.uk/vehicle-exempt-from-vehicle-tax

Can I transfer car tax?

Car tax cannot be transferred, and you must apply for a refund when selling or scrapping your car. If you have existing road tax on your car, you can visit the GOV.UK website and apply for a refund.

Once you get a new car, you will then have to tax your car online.

How do I check if my car is taxed?

Check if your car is taxed on the GOV.UK website, here. It’s a legal requirement to tax your car, so make sure you get this arranged before you drive your new car for the first time.

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