Introduction:
The Driver and Vehicle Licensing Agency (DVLA) in the UK is responsible for many aspects related to vehicles, including the registration and taxation of vehicles. Car tax, also known as Vehicle Excise Duty (VED), is an annual tax that is levied on most types of vehicles, including cars, motorbikes, and other vehicles. It is used to generate revenue for the government and is based on various factors, including the vehicle’s CO2 emissions, fuel type, and age. In this article, we will explore two standards to the DVLA Car Tax that you should be aware of.
Standard 1: The Environmental Standard
Since 2001, the environmental standard has been used to tax newly registered cars in the UK. This standard is based on a vehicle’s CO2 emissions, with lower-emitting vehicles taxed less than higher-emitting vehicles. The standard is based on a sliding scale that ranges from zero to 2,000 g/km.
For example, cars that emit zero or very low levels of CO2 emissions, such as electric or hybrid cars, are exempt from car tax. Vehicles that emit between 1 and 50 g/km of CO2 emissions pay £10 per year, and those that emit between 51 and 75 g/km pay £25. Vehicles that emit between 76 and 90 g/km pay £110, while those that emit between 91 and 100 g/km pay £145.
The standard increases for cars emitting higher levels of CO2 emissions. For example, cars that emit between 226 and 255 g/km of CO2 emissions pay £1,850 per year, and those that emit over 256 g/km pay £2,245. It’s important to note that the emissions level is determined using a standard laboratory test, which may not accurately reflect real-world driving conditions.
It’s also important to note that these rates only apply to cars registered after March 1, 2001. Vehicles registered before this date are taxed based on their engine size.
Standard 2: The 40-year Rule
Another standard to the DVLA car tax that many car enthusiasts are interested in is the 40-year rule. This rule exempts cars from paying car tax once they reach 40 years of age. This rule applies to cars built before 1 January 1979. This means that owners of classic cars can save money on car tax once their vehicle reaches this age.
It’s important to note that this exemption only applies to cars that have not been substantially modified from their original state. If the car has been modified in certain ways, it may no longer be eligible for the exemption. The modifications that are allowed are those that were available when the car was originally produced, such as different tyres or an alternative engine. Any extensive modifications, such as a different chassis or engine swap, may disqualify the car from the exemption.
Conclusion:
In conclusion, there are two standards to the DVLA car tax that you should be aware of. The environmental standard taxes vehicles based on their CO2 emissions, with lower-emitting vehicles taxed less than higher-emitting vehicles. This encourages drivers to choose vehicles with lower emissions, which helps to reduce pollution and greenhouse gas emissions. The 40-year rule exempts classic cars from car tax once they reach 40 years of age, which is great news for car enthusiasts who own classic vehicles.
It’s important to note that these standards are subject to change, and you should always check with the DVLA for the most up-to-date information. The UK government is continually seeking ways to encourage environmentally friendly behaviour, and this may result in changes to the environmental standard in the future. Similarly, the 40-year rule may be reviewed from time to time, and it’s important to keep up to date with any changes that may affect your classic car.
What is the Driver and Vehicle Licensing Agency (DVLA)?
The DVLA is the administrative organization responsible for the regulation, oversight, and authentication of all motor vehicles and licensed drivers authorized to drive within the United Kingdom. The DVLA implements the Car Tax in tandem with an overarching management system that contains full driving records – including vehicle registration and applicable DVLA Car Tax – with regard to licensed drivers. The DVLA Car Tax was instated in order to promote a more ecologically-friendly and conscious transportation protocol with regard to motor vehicles and their respective carbon footprint; The DVLA institutes the following standards with regard to the imposed Car Tax:
1. Private and Light Goods Vehicles (TC11) registered prior to March 1st, 2010 will be subject to the following DVLA Car Tax:
• Vehicles with an engine size – also known as cubic centimeter or ‘cc’ – exceeding 1,549 will be responsible to submit a payment of 205 pounds on an annual basis; this can be submitted in half every 6 months
• Owners of vehicles with engines not exceeding 1,549 cc will be responsible to submit a payment of 125 pounds on an annual basis; this payment can be submitted in half every 6 months
2. Vehicles operating with Petrol (TC48) or Diesel (TC49) Engines registered subsequent to March 1st, 2010 will be subject to the following DVLA Car Tax:
• Vehicles classified as ‘Band A’, which entails that they produce carbon dioxide emissions ranging from 0 to 100 grams per kilometer (g/km) will not be responsible to submit a DVLA Car Tax
• Vehicles classified as ‘Band B’, which entails that they produce carbon dioxide emissions ranging from 101 to 110 grams per kilometer (g/km) will be responsible to submit a 20DVLA Car Tax totaling 20 pounds that is not available for payment in 6 month increments
• Vehicles classified as ‘Band C’, which entails that they produce carbon dioxide emissions ranging from 111 to 120 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 30 pounds that is not available for payment in 6 month increments
• Vehicles classified as ‘Band D’, which entails that they produce carbon dioxide emissions ranging from 121 to 130 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 90 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band E’, which entails that they produce carbon dioxide emissions ranging from 131 to 140 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 110 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band F’, which entails that they produce carbon dioxide emissions ranging from 141 to 150 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 125 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band G’, which entails that they produce carbon dioxide emissions ranging from 151 to 165 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 155 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band H’, which entails that they produce carbon dioxide emissions ranging from 166 to 175 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 180 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band I’, which entails that they produce carbon dioxide emissions ranging from 176 to 185 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 190 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band J’, which entails that they produce carbon dioxide emissions ranging from 186 to 200 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 225 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band K’, which entails that they produce carbon dioxide emissions ranging from 201 to 225 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 235 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band L’, which entails that they produce carbon dioxide emissions ranging from 226 to 255 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 415 pounds that is available for payment in (2) 6-month increments
• Vehicles classified as ‘Band M’, which entails that they produce carbon dioxide emissions exceeding 255 grams per kilometer (g/km) will be responsible to submit aDVLA Car Tax payment totaling 425 pounds that is available for payment in (2) 6-month increments
