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The Good Deal Guide - in association with Direct Line

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What's the Government's cut?

Since March 2001, the price of your road tax disc has been based on how much carbon dioxide (C02) your car emits. The old system, based only on engine size, was changed to encourage drivers out of gas-guzzling, high-emissions older cars and into newer, more eco-friendly models. Cars registered before March 1 2001 are still taxed according to engine size, however.


How are the charges graded?

For cars registered since March 1 2001, there are six bands: A-G, according to official carbon dioxide output figures. These are measured in grams per kilometre (g/km).

  • Band A: cars emitting up to 100g/km
  • Band B: 101-120g/km
  • Band C: 121-150g/km
  • Band D: 151-165g/km
  • Band E: 166-185g/km
  • Band F: 185g/km-224g/km
  • Band G: 225g/km-plus (cars registered from 23/06/06; earlier cars in this category are Band F)

Some alternative-fuel vehicles, such as those converted to run on LPG (liquid petroleum gas) or CNG (compressed natural gas) currently qualify for slightly discounted rates, band by band, but these incentives are likely to be phased out in favour of purely emissions-based bandings. Electric vehicles, for example, fit into Band A.
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