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Car tax

Car tax before March 2001

Two bands, one boundary, and nothing else in the calculation. This is the simplest of the three systems and it still covers a lot of cars.
£230
Not over 1549cc
DVLA, V149: rates of vehicle tax from 1 April 2026 (as of 1 April 2026)
£375
Over 1549cc
DVLA, V149: rates of vehicle tax from 1 April 2026 (as of 1 April 2026)

Checked on 1 April 2026.DVLA, V149: rates of vehicle tax from 1 April 2026 (as of 1 April 2026)

How is car tax worked out on a car registered before 2001?

By engine capacity alone. There are two bands in the private and light goods class, split at 1549cc. Fuel type, CO2 and list price make no difference, because none of them was part of the system when these cars were registered.

That makes the sum trivial and the outcome occasionally strange. A 1.4 litre car that does 30 miles to the gallon pays the lower rate, and a modern feeling 1.6 registered in February 2001 pays the higher one, purely because of where the boundary falls.

The two bands, 2026/27

Private and light goods rates for vehicles first registered before 1 March 2001, 2026/27
Engine capacityTwelve monthsTypical cars
Not over 1549cc£230Fiesta, Polo, Micra, Corsa and most 1.0 to 1.5 litre hatchbacks.
Over 1549cc£375Mondeo, Vectra, most 1.6 litre and larger saloons and estates.

The 40 year exemption

  • A vehicle built more than 40 years ago can be taxed in the historic vehicle class at a nil rate.
  • It rolls forward every year, so the qualifying date moves with the calendar rather than being fixed.
  • It is claimed, not granted. You still have to tax the vehicle annually, and the licence is issued at nil.
  • The date that counts is when the vehicle was built, and DVLA falls back to the registration date where the build date is not known.

Common questions

Where do I find my car's engine size?
Section P.1 of the V5C, in cubic centimetres. The free DVLA vehicle enquiry service shows it as well. A car described as a 1.6 is usually somewhere between 1560cc and 1600cc, so the badge is not close enough to settle which band it is in.
Why is the cut off 1549cc and not 1500cc?
It is the line drawn when the private and light goods class was set, and it has never moved. It catches a lot of nominal 1.6 litre engines and lets a lot of nominal 1.5 litre engines through, so plenty of cars sit closer to the boundary than their badge suggests.
Are old cars exempt from car tax?
A vehicle built more than 40 years ago can be taxed in the historic vehicle class, which is a nil rate. You still have to tax it every year, and the exemption is claimed rather than granted automatically. It runs on a rolling 40 year basis.
Does CO2 affect a pre 2001 car at all?
No. CO2 based rating started on 1 March 2001, and a car registered before that date is charged on engine capacity for the rest of its life. That is why a very clean small engine and a thirsty one of the same size pay exactly the same.

Sources

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