In the UK, the Vehicle Excise Duty (VED), colloquially known as 'road tax', is a necessary toll for the privilege of driving on public roads. It has been around in some form since 1888, where a tax was charged for using certain public highways.  

What is Road Tax (Vehicle Excise Duty)? 

Nowadays the fee varies according to the car's CO2 emissions level, when choosing a car, it's important to consider the additional costs that come with it. And one of these crucial costs is the road tax, which can add up significantly over the years.  

Owning a vehicle that falls under a lower tax band can make quite a difference to your pocket. Do also be aware that VED increases are announced occasionally, in the UK government budget. 

But worry not, budget-conscious motorists! We're here to help. We've compiled a list of 11 affordable cars that are cheap to tax. These models deliver both economic driving and reduced tax, giving you more pounds to spend on those thrilling road trips. 

UK Cars With £30/£20 Road Tax 

1. Hyundai i10 

A superb city car, the Hyundai i10 comes with a frugal 1.0-litre petrol engine that emits just 117g/km of CO2, putting it in the £30 road tax band. Its compact size and nimble handling make it perfect for navigating through narrow urban streets. 

2. BMW 2 Series 

The BMW 2 Series Active Tourer, specifically the 218d model, slides into the £30 tax bracket, thanks to its CO2 emissions of 111g/km. Despite the low emissions, it delivers a punchy performance and premium comfort. 

3. Mazda 6 Tourer 

For a more spacious option, the Mazda 6 Tourer's 2.2-litre diesel engine achieves CO2 emissions of 127g/km, allowing for a £30 tax rate. The Mazda 6 Tourer is perfect for families, offering ample space and comfort without breaking the bank on road tax. 

4. Mercedes GLA 

For those desiring a bit of luxury without the hefty tax bill, the Mercedes GLA 200d is a perfect choice. Emitting only 114g/km of CO2, it enjoys a £30 tax rate. Its sleek design and spacious interior provide a luxury SUV experience at a fraction of the expected cost. 

What Older Cars Are Cheap to Tax? 

5. Mini Hatchback 

The iconic Mini Hatchback, specifically models produced between 2006 and 2014, emit around 127g/km of CO2, meaning they benefit from a low tax rate. They’re also famed for being great to drive, and have a stylish charm reminiscent of the original Mini. 

6. Renault Kadjar 

The Renault Kadjar, especially the 1.5-litre diesel models made before 2017, emits just 99g/km of CO2, giving it a tax rate of £20 per year. Combining practicality with efficiency, the Kadjar is a compelling choice for those seeking a budget-friendly SUV. 

7. Jaguar XE 

For an older luxury vehicle that is light on the tax, consider the Jaguar XE diesel models manufactured before 2017. These stylish saloons fall into the £20 tax bracket, offering superior comfort and performance for a reasonable annual cost. 

Small Cars with Cheap Road Tax 

8. Toyota Prius 

If you're environmentally conscious, the Toyota Prius is a standout option. The hybrid model emits just 70g/km of CO2, which exempts it from road tax. Plus, its compact size makes it ideal for city driving. 

9. Volkswagen Up! 

The VW Up! is a great option for urban dwellers. The 1.0-litre petrol model emits just 96g/km of CO2, resulting in a £20 tax bill. It's a stylish and practical vehicle that's sure to save you money. 

10. Citroen C4 Cactus 

The quirky Citroen C4 Cactus 1.6 BlueHDi emits a mere 89g/km of CO2. This not only results in £0 road tax but also in an incredibly economical car. Perfect for those looking for a car with personality without a hefty tax bill. 

11. Fiat Panda 

Finally, the Fiat Panda 0.9 TwinAir has a low tax rate due to its CO2 emissions of just 99g/km. This compact car is practical, economical, and surprisingly spacious - a real winner for city dwellers. 

The Future of Road Tax 

As we hurtle towards a future of greener technologies and increased environmental consciousness, the landscape of road tax in the UK is set to evolve. The government is already implementing tax incentives to encourage the adoption of electric vehicles (EVs). A trend that is likely to gather momentum as we strive towards cleaner, greener motoring. 

At the same time, we may witness an escalation in tax rates for vehicles with higher emissions. This would incentivise the shift towards more eco-friendly alternatives. It also aligns with the global drive to reduce our carbon footprint. In addition to, combating climate change, and striving for a sustainable future. 

That being said, the future of road tax is far from set in stone. Speculations abound, and some industry pundits suggest that as EVs rise in popularity and traditional fuel vehicles decline, the government may explore alternative taxation methods. One proposition that has been mooted is a mileage-based tax system. 

Whatever the future holds and regardless of the taxation methods implemented, there will always be a market for economical, tax-efficient cars. From the bustling city streets to the open country roads, from short daily commutes to long family road trips, these 11 cars promise to keep your road tax as low as possible.  

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