Why is my car ULEZ-compliant but has a high rate of road tax - why?

My Shogun is ULEZ compliant (lower emissions) so why is the road tax £675 pa? Surely it should qualify for lower tax like my friend's Shogun who pays half of what I pay and his car is not ULEZ compliant?

Asked on 15 August 2023 by GORDON MCKAY

Answered by David Ross
The ULEZ zone is designed to reduce the number of vehicles entering London that do not meet emissions criteria for nitrogen oxides, which are particularly harmful to humans, animals and the ecosystem. Vehicle Excise Duty for cars registered between 2001 and 2017 is based on carbon dioxide (CO2) emissions, which contribute to global warming. If your Shogun costs £675 a year to tax, this would suggest it is in Band L for CO2 emissions between 226-255 g/km.

It might seem unfair that your Shogun is ULEZ-compliant and attracts a high rate of VED, but these two taxation systems are designed to reduce different kinds of harmful emissions.
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