As the cost of motorings grows, here's how to cut your cars' bills
Car tax guide

Microsoft
Do you know how much your annual road tax bill is? In the March 2011 budget the Chancellor revised the system to encourage people to drive greener cars.
Cars registered after 1 March 2001 will pay tax based on carbon dioxide emissions, ranging from free road tax for the greenest models up to £460 for the most polluting.
| Band | CO2 emission (g/km) | 12 months rate | six months rate |
|---|---|---|---|
| A | Up to 100 | £0.00 | Not available |
| B | 101-110 | £20.00 | Not available |
| C | 111-120 | £30.00 | Not available |
| D | 121-130 | £95.00 | £52.25 |
| E | 131-140 | £115.00 | £63.25 |
| F | 141-150 | £130.00 | £71.50 |
| G | 151-165 | £165.00 | £90.75 |
| H | 166-175 | £190.00 | £104.50 |
| I | 176-185 | £210.00 | £115.50 |
| J | 186-200 | £245.00 | £134.75 |
| K* | 201-225 | £260.00 | £143.00 |
| L | 226-255 | £445.00 | £244.75 |
| M | Over 255 | £460.00 | £253.00 |
*Band K includes cars that have a CO2 figure over 225g/km but were registered before 23 March 2006
**Alternative fuel cars are taxed according to the bands above, but receive a £10 annual discount over the prices for petrol and diesel cars.
The new system also charges motorists more in their first year of ownership - a kind of showroom tax; the more inefficient the car, the more you will pay for road tax in its first year of registration. This is only applicable for new cars bought after 1 April 2010. After the first year rate, it reverts back to the rates in the table above.
First year rate for cars registered on or after 1 April 2010
| Band | CO2 emission (g/km) | 12 months rate | six months rate |
|---|---|---|---|
| A | Up to 100 | £0.00 | Not available |
| B | 101-110 | £0.00 | Not available |
| C | 111-120 | £0.00 | Not available |
| D | 121-130 | £0.00 | Not available |
| E | 131-140 | £115.00 | £63.25 |
| F | 141-150 | £130.00 | £71.50 |
| G | 151-165 | £165.00 | £90.75 |
| H | 166-175 | £265.00 | Not available |
| I | 176-185 | £315.00 | Not available |
| J | 186-200 | £445.00 | Not available |
| K | 201-225 | £580.00 | Not available |
| L | 226-255 | £790.00 | Not available |
| M | Over 255 | £1,000.00 | Not available |
Cars registered before 1 March 2011 will be taxed depending on their car's engine size
| Engine size (cc) | 12 months rate | six months rate |
|---|---|---|
| Below 1,549 | £130.00 | £71.50 |
| More than 1,549 | £215.00 | £118.25 |
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