Cars registered before March 1 2001 are still taxed according to their engine size. There are two categories: cars with engines up to 1549cc in capacity, and cars with engines larger than that size. Currently (March 2008) cars with engines up to 1549cc are taxed at £115 a year or £63.25 for six months, and those over 1549cc are £180/£99.
So-called historic vehicles - pre-1973 - are currently still tax-exempt, though this may change in coming years. However, owners still need to apply for the exemption and display a valid disc.
How much will I pay?
The government reassesses the tax bandings and the pricing in each every Budget: for the latest charges, check out www.dvla.gov.uk. However, Band A vehicles will stay tax-exempt, incurring no charge, for the foreseeable future. Problem is, there aren't many to choose from - apart from electric vehicles like the G-Wiz, just a few tiny city cars or specially-modified vehicles like the 99g/km Seat Ibiza Ecomotive will make the grade.
Band B will remain inexpensive (it's currently just £35 a year), and there are more cars to choose from in this category. Besides city cars and a number of superminis, a few economical and efficient small family cars also come into this tax grade.
Expect the high-output gas-guzzlers to get clobbered further in the future, though. Band G (a top-rate tax band introduced in 2006) currently incurs a tax-rate of £300 a year or £165 for six months, and this is set to increase further. Remember also that Band G cars (and older vehicles with engines over three litres in capacity) will be liable for the £25-a-day London congestion charge from October 2008.
