Website of the UK government

Pre-Budget Report 2008 - Reforms to vehicle tax

The Chancellor has announced a series of measures to reform vehicle tax.

• Pre-Budget Report 2008

The cost of vehicle tax for cars, motorcycles, light goods vehicles and trade licences

Tax classes include:

• private/light goods vehicles, motorcycles and tricycles
• cars registered on or after 1 March 2001 based on CO2 emissions and fuel type
• cars registered on or after 23 March 2006 based on CO2 emissions over 225g/km and fuel type
• light goods vehicles registered on or after 1 March 2001
• euro 4 light goods vehicles registered between 1 March 2003 and 31 December 2006
• trade licences

• The cost of vehicle tax for cars, motorcycles, light goods vehicles and trade licences
• New 'Euro 5' vehicle tax rate to be introduced from 1 January 2009

The cost of vehicle tax for buses and larger vehicles

Tax classes include buses, reduced pollution buses, general haulage, reduced pollution general haulage, recovery vehicles and private HGV.

• The cost of vehicle tax for buses and larger vehicles

The cost of vehicle tax for large rigid and articulated goods vehicles

Tax classes include rigid vehicles, reduced pollution rigid vehicles, trailer duty, reduced pollution trailer duty, two axle tractive unit articulated vehicles, reduced pollution two axle tractive unit articulated vehicles, three axle tractive unit articulated vehicles and reduced pollution three axle tractive unit articulated vehicles.

• The cost of vehicle tax for large rigid and articulated goods vehicles

The cost of vehicle tax for other types of vehicles

The leaflet ‘Rates of vehicle excise duty' (V149) shows the cost of vehicle tax for: special vehicles (showman’s goods, showman’s haulage, works truck, digging machines, road rollers, mobile cranes/pumps), small islands vehicles, special trailer duty, special types vehicles, reduced pollution special types vehicles, combined transport and reduced pollution combined transport.

• Download ‘Rates of vehicle excise duty' (V149) (PDF, 158K)
• Help with PDF files

Spreading the cost

You can spread the cost of the vehicle tax by buying Post Office® savings stamps that cost £5.00 each. Collected on a Post Office® savings stamp collector card, you can use the stamps as full or part payment for your vehicle tax. These stamps can only be used at a Post Office® branch that issues tax discs.