Rates of Vehicle Excise Duty

The links below give the rates of vehicle excise duty which take effect for licences commencing 1 April 2001

The notes on the vehicle licence application form explain how and where to apply.

Please read carefully.

Private/Light Goods Vehicles (Private Vehicles, Light Vans, Cars, Taxis etc.)

Private/Light Goods Vehicles
(Vehicles registered before 1st March 2001)

(ie. goods vehicles not over 3,500 kgs revenue weight)

Part I TC11 Registered before 1 March 2001 Private Vehicles Light Vans, Cars, Taxis etc.
	12 months rate Ł	6 months rate Ł
Not over 1549cc	105.00	57.75
Over 1549cc	160.00	88.00

Private/Light Goods Vehicles
(Vehicles registered on or after 1st March 2001)

Vehicles registered on or after 1st March 2001		Diesel Car TC 49		Petrol Car TC 48		Alternative Fuel Car TC 59
Bands	CO₂ Emission Figure (g/km)	12 months rate Ł	6 months rate Ł	12 months rate Ł	6 months rate Ł	12 months rate Ł	6 months rate Ł
Band A	Up to 150	110.00	60.50	100.00	55.00	90.00	49.50
Band B	151 - 165	130.00	71.50	120.00	66.00	110.00	60.50
Band C	166 - 185	150.00	82.50	140.00	77.00	130.00	71.50
Band D	Over 185	160.00	88.00	155.00	85.25	150.00	82.50

Company Car Tax

The CO₂ -based company car tax rules

From April 6, 2002 company car tax will be based on a percentage of the P11D value of a car, dictated by its emissions of carbon dioxide per kilometre. There will be no discounts for any business miles driven.

The benefit charge will be based on a sliding scale, from a minimum of 15% to a maximum of 35% of the P11D value of the company car. Drivers will pay tax on the benefit charge at their marginal rate of income tax, either 22% or 40%.

The sliding scale increases in increments of one percentage point for every 5 grams per kilometre of CO₂ emitted. The CO₂ emissions figure for a car should be rounded down to the nearest 5 grams per kilometre. The sliding scale will tighten in subsequent tax years to encourage company car drivers to select lower emission vehicles.

Diesel cars will incur a flat three percentage points penalty, unless they meet Euro IV emission standards, although no car will incur a benefit charge above 35% of its P11D value. For example, a diesel car that would qualify for a tax charge of 20% of its P11D value would give rise to a tax charge of 23% of its P11D value.

The new CO₂ -based system will not apply to vehicles with no approved CO₂ rating or older vehicles registered prior to January 1998 for which CO₂ data is not known. The taxable benefit for such cars will be based on their engine size as shown in the table below.

BIK FOR OLDER CARS

Engine size (cc)
0-1,400
1,401-2,000
2,000-plus

No CO₂ figure
15%
25%
35%

Older vehicle
15%
22%
32%

BIK FROM APRIL 2002

% of P11D To be taxed	CO₂ (g/km) 2002/3	CO₂ (g/km) 2003/4	CO₂ (g/km) 2004/5
15*	165	155	145
16*	170	160	150
17*	175	165	155
18*	180	170	160
19*	185	175	165
20*	190	180	170
21*	195	185	175
22*	200	190	180
23*	205	195	185
24*	210	200	190
25*	215	205	195
26*	220	210	200
27*	225	215	205
28*	230	220	210
29*	235	225	215
30*	240	230	220
31*	245	235	225
32*	250	240	230
33**	255	245	235
34***	260	250	240
35****	265	255	245

Diesel supplements: *add 3% if a car runs solely on diesel; **add 2% if a car runs solely on diesel; ***add 1% if a car runs solely on diesel; ****maximum charge so no diesel supplement.

N.B: Exact CO₂ figure should be rounded down to the nearest 5g/km