Ever wondered what Vehicle Tax is and why we need to pay it? We’re answering some of the biggest questions relating to this topic, including the top 10 of the most expensive cars to tax and which cars are exempt.
What is Vehicle Tax?
Vehicle tax, or vehicle excise duty (also known as car tax, road tax, VED) is the annual tax levied as excise duty on cars. It must be paid on the majority of cars which use (or park) on public roads in the UK.
Why do we need to pay it?
VED helps to cover the cost of the essential repairs to the roads and emergency services. It is the registered keeper’s responsibility to make sure that the Vehicle Tax is paid. Sometimes, dealerships will include the first-year Tax in the purchase price of the vehicle, so check with your selling dealer before collecting your new car.
VED must be paid yearly and can be done as a one-off payment or split into monthly payments.
Are there Cars that are exempt?
Certain vehicles are exempt from VED, meaning they are free to tax. These include:
- Disabled-class vehicles – disability exemption can be claimed when you apply for vehicle tax.
- Mobility Scooters and powered wheelchairs – they must have a maximum speed of 8mph on the road, and be fitted with a device limiting them to 4 mph on footways to be exempt.
- Historical Vehicles – Vehicles made before 1 January 1981 are exempt.
- Electric Cars – the electricity must come from an external source or an electric storage battery not connected to any source of power when the vehicle is moving.
- If a car emits zero grams of CO2 per kilometre, it’s eligible for free road tax. This rules out petrol- and diesel-powered cars, leaving you with your pick of electric and hydrogen-powered cars.
What were the top best 10 road tax-exempt cars in 2022?
Will the Government allow the exemption for much longer as we become more electrified in the future? For now, electric cars are an attractive option for both private and business users due to their cheap running costs. Some of the most popular electric cars in 2021 are:
- Tesla Model 3
- VW ID3
- Porsche Taycan
- Skoda Enyaq
- Kia e-Niro.
- Peugeot e-208.
- Vauxhall Corsa-e
- Ford Mustang Mach-e
- Mercedes EQC
- Hyundai Kona Electric
What are the most expensive cars to tax?
Supercars have become subjected to a Premium fee of £490 and tax calculation based on emissions. Most of these vehicles will cost a whopping £2,245 in the first year, dropping to around £600 thereafter.
- The Lamborghini Aventador
- Bentley Continental GT Supersports
- Maserati GranTurismo
- Ferrari GTC Lusso
- Bentley Mulsanne
- Aston Martin Vantage
- Rolls Royce Dawn
What are the least expensive cars to tax?
Choosing a more budget friendly option will allow you to pay less on the first year and £155 in subsequent years. Alternatively fuelled cars (hybrids, etc.) attract a £10 discount, bringing it down to £145 per year. Here are some of our top suggestions for the least expensive cars to tax in 2022:
- MINI Countryman Plugin
- Hybrid Nissan Qashqai
- Peugeot 108
- VW Golf
- Lexus CT200H
- Citroen C4
- Vauxhall Astra
- Ford Fiesta
- Ford Focus
- Alfa Romeo Giulietta
- Kia Picanto
- Renault Twingo
- Renault Clio
- Hyundai i30