How are first-year road tax rates calculated?

First-year road tax rates are based on the vehicle is CO2 emissions at the time of first registration. Zero-emission vehicles (0g/km) pay GBP 0. Vehicles with higher CO2 emissions pay more, with rates rising through Bands A to M. The first-year rate uses the CO2 figure from the V5C log book, which reflects the vehicle is official emissions figure at the factory.

What is the first-year rate for a new car?

A new car pays the first-year rate based on its CO2 emissions. A typical family car (120-140g/km) pays GBP 160-255 in year 1. A small efficient car (under 100g/km) pays GBP 0-130. A high-performance car (over 200g/km) pays GBP 495-590. The first-year rate applies to brand new vehicles and imported vehicles being registered for the first time in the UK.

Do I pay the first-year rate again when buying a used car?

No. The first-year rate is a one-time payment made when the vehicle is first registered. When you buy a used car, you pay the standard annual rate (GBP 180/year for petrol and diesel) from year 2 onwards. The exception is if you import a vehicle — it is treated as a first registration and pays the first-year rate again.

What CO2 band does my car fall into?

Your car is placed in a VED band based on its official CO2 emissions figure. This is shown on your V5C log book in section D. You can also check at GOV.UK/check-vehicle-tax by entering your registration. Bands range from A (0-100g/km) to M (over 255g/km). Lower bands have lower first-year rates.

Does the first-year rate apply to company cars?

Yes. Company cars pay the same first-year VED rates as private vehicles. The company (as the registered keeper) pays the first-year rate when the vehicle is first registered. From year 2, the company pays the standard rate (GBP 180/year for standard vehicles). The first-year rate for company cars is deductible as a business expense.

UK Road Tax First Year Rates 2026 — VED Bands and First R...

UK Road Tax First Year Rates 2026

When a vehicle is first registered in the UK, it pays a first-year Vehicle Excise Duty (VED) rate based on its CO2 emissions. Understanding these rates helps you budget for a new vehicle purchase. ITV.es and DGT.

The First-Year Rate System

How It Works

The first-year VED rate is a one-time payment:

Applies when a vehicle is first registered in the UK
Based on the vehicle's official CO2 emissions
Higher CO2 vehicles pay more in year 1
From year 2, all vehicles pay the standard annual rate

What Triggers First-Year Rate

First-year rates apply for:

Brand new vehicles registered for the first time
Imported vehicles being registered in the UK for the first time
Vehicles re-registered after being off the road for an extended period
Vehicles with a new registration number issued

Complete First-Year Rate Table

Bands A Through M

| CO2 (g/km) | Band | First Year Rate |

|-----------|------|----------------|

| 0 | A | £0 |

| 1-50 | B | £0-30 |

| 51-75 | C | £15-30 |

| 76-90 | D | £120 |

| 91-100 | E | £130 |

| 101-110 | F | £145 |

| 111-120 | G | £160 |

| 121-130 | G | £195 |

| 131-140 | H | £215 |

| 141-150 | H | £255 |

| 151-165 | I | £285 |

| 166-175 | I | £335 |

| 176-185 | J | £375 |

| 186-200 | J | £435 |

| 201-225 | K | £495 |

| 226-255 | L | £545 |

| Over 255 | M | £590 |

Additional Notes

Rates shown are for petrol and diesel vehicles
Pure electric vehicles (0g/km): GBP 0 in year 1
Diesel vehicles with over 225g/km: GBP 600+ first-year rate

First-Year Rate Examples

Common Vehicles

|---------|--------|-----|-----------|

| Vauxhall Corsa 1.2 | Petrol | 104g/km | £130 |

| Ford Fiesta 1.0 | Petrol | 97g/km | £130 |

| VW Golf 1.5 TSI | Petrol | 121g/km | £195 |

| BMW 320d | Diesel | 118g/km | £160 |

| Nissan Qashqai 1.3 | Petrol | 137g/km | £215 |

| Range Rover Sport 3.0 SD | Diesel | 198g/km | £435 |

| Tesla Model 3 | Electric | 0g/km | £0 |

| Toyota RAV4 PHEV | Hybrid | 22g/km | £10 |

Performance Cars

| Vehicle | CO2 | First Year |

|---------|-----|-----------|

| BMW M3 Competition | 230g/km | £545 |

| Mercedes-AMG A45 | 186g/km | £435 |

| Porsche 911 Carrera | 205g/km | £495 |

| Audi RS6 Avant | 222g/km | £545 |

Premium Vehicle Supplement

Additional GBP 410 First-Year Supplement

In addition to the CO2-based first-year rate, vehicles over £40,000 pay a first-year supplement:

| Vehicle Value | Additional Year 1 Charge |

|--------------|-------------------------|

| Under £40,000 | £0 |

| £40,000-45,000 | £410 |

| Over £45,000 | £410 |

This supplement applies from year 2 onwards as well, for a total of 5 years (years 2-6).

Examples with Supplement

BMW 520d M Sport (£50,000, 125g/km):

First-year rate: GBP 195
Premium supplement: GBP 410
Total year 1: GBP 605

Tesla Model 3 Long Range (£48,000, 0g/km):

First-year rate: GBP 0
Premium supplement: GBP 410
Total year 1: GBP 410

Standard Annual Rates (Years 2+)

After the first year, all vehicles pay standard rates:

| Vehicle Type | Annual Rate (Years 2+) |

|-------------|----------------------|

| Standard vehicle | £180 |

| Diesel | £190 |

| Premium vehicle (over £40,000) | £590 (years 2-6) |

| Premium vehicle (year 7+) | £180 |

Importing a Vehicle

UK-Registered Imports

Imported vehicles pay the first-year rate when first registered in the UK:

Uses the vehicle's CO2 figure from the Certificate of Conformity
If CO2 is not available, DVLA estimates from engine size and type
Higher estimated CO2 may result in higher first-year rate

Northern Ireland to Great Britain

Vehicles moving from Northern Ireland to Great Britain:

Pay first-year rate if not previously registered in GB
Existing GB-registered vehicles transfer normally

Calculating Your Vehicle's First-Year Rate

Step 1: Find CO2

Your vehicle's CO2 is on:

V5C log book section D
GOV.UK/check-vehicle-tax
Manufacturer's specification

Step 2: Match to Band

Find your CO2 in the band table:

0g/km = Band A = GBP 0
1-50g/km = Band B = GBP 0-30
Continue matching to your exact g/km

Step 3: Add Premium Supplement

If vehicle value exceeds £40,000:

Add GBP 410 to the first-year rate

Step 4: Budget for Years 2+

From year 2:

Standard rate: GBP 180/year
Diesel supplement: GBP 10/year
Premium supplement: GBP 410/year (years 2-6)

Key Takeaways

1. First-year rate is based on CO2 — 0g/km = £0, over 255g/km = £590+

2. One-time payment — only paid on first UK registration

3. Premium vehicles over £40,000 add £410 to year 1

4. Standard rate from year 2 is £180/year

5. Diesel supplement of £10/year applies from year 2

6. CO2 figure is on your V5C log book

7. Imported vehicles pay first-year rate on UK registration

8. Budget for year 1 separately from ongoing annual costs

First-year VED rates can be significant for high-emission vehicles. A family car typically pays £130-255 in year 1, while a performance car can pay £500+. Factor this into your vehicle purchase budget.

Official Resources: ITV.es - ITV Booking | DGT - Direccion General de Trafico