Road tax

Road tax, or vehicle excise duty, is an annual tax on the ownership of road vehicles, including cars, vans, lorries and motorcycles.

Road tax requires car owners to pay between £0 and £460 depending on the size of the engine of the car and carbon dioxide emissions.

The Driver and Vehicle Licensing Agency (DVLA) issue owners of vehicles who have paid road tax with a "tax disc", which must be displayed prominently on their vehicle.

Tax discs can be bought for one year or for six months (with two six month discs working out as slightly more expensive than a full year one).

Failure to buy a new tax disc within a month of the expiry of a previous disc results in the automatic issue by the DVLA of a fine for £80. A discount of £40 is available for payment within 28 days, but a maximum penalty of £1,000 can be imposed for non-payment.

The new tax rates are:

• Cars producing less than 100g/km of CO2 - free
• Cars producing between than 101g/km and 110g/km of CO2 - £20 for petrol and diesel cars, £10 for alternative fuel cars
• Cars producing between than 111g/km and 120g/km of CO2 - £30 for petrol and diesel cars, £20 for alternative fuel cars
• Cars producing between than 121g/km and 130g/km of CO2 - £95 for petrol and diesel cars, £85 for alternative fuel cars
• Cars producing between than 131g/km and 140g/km of CO2 - £115 for petrol and diesel cars, £105 for alternative fuel cars
• Cars producing between than 141g/km and 150g/km of CO2 - £130 for petrol and diesel cars, £120 for alternative fuel cars
• Cars producing between than 151g/km and 165g/km of CO2 - £165 for petrol and diesel cars, £155 for alternative fuel cars
• Cars producing between than 166g/km and 175g/km of CO2 - £190 for petrol and diesel cars, £180 for alternative fuel cars
• Cars producing between than 176g/km and 185g/km of CO2 - £210 for petrol and diesel cars, £200 for alternative fuel cars
• Cars producing between than 186g/km and 200g/km of CO2 - £245 for petrol and diesel cars, £235 for alternative fuel cars
• Cars producing between than 201g/km and 225g/km of CO2 - £260 for petrol and diesel cars, £250 for alternative fuel cars
• Cars producing more than 226g/km and 255g/km of CO2 - £445 for petrol and diesel cars, £435 for alternative fuel cars
• Cars producing more than 255g/km of CO2 - £460 for petrol and diesel cars, £450 for alternative fuel cars

	CBI: Britain’s financial sector on the road to recovery The UK financial services sector is undergoing a recovery, despite general feelings of economic uncertainty, according to the CBI.
	Fall in fuel duty revenue may lead to fast-track of road tolls A report by the Institute of Fiscal Studies warns that the government will have to find a way of plugging the shortfall in fuel duty caused by green cars.
	70% of UK drivers don't know road speed limits Research from LV= reveals that 70 per cent of UK motorists don't know road speed limits.
	New pothole road sign developed A new road sign has been developed that could soon be seen on the UK's highways and byways, warning passing motorists about upcoming potholes.
	Young drivers paying nearly £5K to get on the road The average cost of getting onto the road for the first time is £4,459, according to research by the Co-operative Insurance.