Motor tax is a legal requirement for driving in a public place. The amount of the tax payable on standard cars is calculated differently depending on whether they were registered before or after 2008.
Cars Registered Before 2008
For cars registered before 2008, the engine capacity (cc) determines the amount
of tax to be paid. This ranges from a 172 annual payment for a 0 to 1,000 cc car to 1,566 for a
3,001-15,000 cc car.
Cars Registered After 2008
All cars registered since 2008 are taxed based on their CO2 emissions. The degree of emissions is separated into different bands. From January 2011, the annual motor tax rate for Band A(cars that produce 0 120g/km CO2) is 104 and Band G (cars that produce 226g/km CO2 and over) is 2,100.
For electric cars, the tax rate is a standard 146 annually.
All this is however set to change as the reduced emissions rates were too successful in terms of pushing consumer demand and are now under review with the aim of recovering lost revenue which will invariably cost the motorist more when the Motor tax system is revised next year.
Full details of the applicable rates for each vehicle type are available here.