What are 2021 UK vehicle road tax changes?

As of April 1st 2021 the UK government announced changes to the annual road tax charged on all vehicles registered after April 1st 2017.

Similarly to the previous calculation method the first years road tax charge is based on the CO2 emissions of the vehicle, with the second year tax payments for cars registered after April 1st 2017 being standardised rate.

The table below shows the first years charges for vehicles registered from April 1st 2021 and standard rate charges for cars registered after April 1st 2017.

Vehicles Registered on or After April 1st 2020

CO2 Emissions
(g/km)
First Year Rate

First Year Rate
(Diesel)
Standard Rate'
0 £0 £0 £0
1-50 £10 £25 £155
51-75 £25 £115£155
76-90 £115£140£155
91-100 £140£160£155
101-110 £160£180£155
111-130 £180£220£155
131-150 £220£555£155
151-170 £555£895£155
171-190 £895£1,335£155
191-225 £1,335£1,895£155
226-255 £1,895£2,245£155
Over 255 £2,245£2,245£155

This payment covers road tax for your the first year of ownership. Standard rate charges take effect after the first years road tax runs out. For vehicles with a list price above £40,000 and additional charge of £335 is payable annually for the 5 years after the first years tax runs out.

What happens to the road tax on the car I'm part exchanging?

The road tax on a car cannot be transferred between owners. Therefore whenever you purchase a used vehicle you (the purchaser) will be liable to pay the vehicle road tax for that car. Here at Clevedon Garages our sales representative can assist you in doing upon collection of your car.

If you have an existing vehicle which you are part exchanging you are entitled to a refund equal to any remaining full months vehicle tax left. We will remove you as the legal owner which will trigger this refund to be actioned.