The Secret to £20 Road Tax: If you’ve ever asked yourself, “Is it really possible to own a car with just £20 road tax per year in the UK?” the answer is a resounding yes. Not only is it possible, but there are also hundreds of models on the second-hand market that fall within this affordable tax bracket. In this extensive guide, we’ll uncover the secret to £20 road tax and explore UK vehicles that are not only economical but also practical, reliable, eco-friendly, and budget-friendly. Whether you’re a first-time car buyer, a growing family looking to cut costs, or a professional keeping an eye on total cost of ownership, these vehicles offer real value.
From 2001 to 2017, the UK Vehicle Excise Duty (VED) system encouraged the purchase of low-emission vehicles by offering significantly lower annual road tax rates—often just £20 per year. Although tax rules changed in 2017, the pre-2017 used car market is still packed with models that meet the necessary criteria. If you know what to look for and where to search, you can grab a deal that continues to save you hundreds over the years.
The Secret to £20 Road Tax
| Feature | Details |
|---|---|
| Target Vehicles | UK models registered between 1 March 2001 and 31 March 2017 |
| VED Band | Band C (101-110g/km CO₂ emissions) – £20/year |
| Fuel Efficiency | Many offer 60+ mpg, ideal for commuting and families |
| Popular Models | Ford Fiesta, Hyundai i10, Mazda 3, Skoda Fabia, Kia Rio |
| Tax Changes in 2025 | From April 2025, EVs will no longer be exempt from road tax [source] |
| Where to Search | Cazoo, AutoTrader, GOV.uk VED tool |
Owning a car that costs just £20 in annual road tax is more than a savvy financial move—it’s a smart, strategic decision in today’s high-cost world. By selecting from a range of proven vehicles with excellent fuel efficiency and low running costs, you’re making a long-term investment in affordability. The pre-2017 used car market remains a treasure trove of value, but you must act smart, check your details, and stay ahead of evolving policies. With tax rule changes looming in 2025, now is a prime time to buy.
Why Do Some Cars Only Cost £20 in Road Tax?
Between 2001 and 2017, the UK government introduced a CO₂-based Vehicle Excise Duty (VED) system. This meant that your car’s annual road tax would depend on its emissions output. If your vehicle emitted between 101g/km and 110g/km of CO₂, it was placed into Band C, which incurred a nominal road tax of just £20 per year.
This policy aimed to encourage drivers to opt for vehicles with lower emissions, reduce the environmental impact of transport, and reward car manufacturers who produced greener technology. Because of these incentives, many automakers created ultra-efficient models specifically designed to fit into these tax bands.
Pro Tip: Before you buy, always check a car’s registration date and emissions output using the GOV.UK’s official VED checker.
Cars registered after April 1, 2017, are subject to a different taxation system that factors in the car’s list price and whether it’s an internal combustion engine, hybrid, or electric. This often results in higher annual fees, particularly for newer petrol and diesel cars.
Best UK Cars with £20 Road Tax
Let’s explore some of the best-performing vehicles available on the second-hand market that qualify for £20 road tax. These vehicles are known for reliability, high miles per gallon (mpg), and affordability.
1. Ford Fiesta (2008–2017)
- Best For: Students, first-time buyers, young families
- Tax Band: Band C
- Engines: 1.5 TDCi, 1.4 TDCi, 1.0 EcoBoost
- MPG: Up to 76mpg
- Why It’s Great: Easy to drive, cheap parts, high resale demand
- More Info: Ford.co.uk
2. Hyundai i10 (2014–2017)
- Best For: City dwellers, retirees, young professionals
- Tax Band: Band C (1.0 SE Blue)
- MPG: Up to 65 mpg
- Why It’s Great: Excellent reliability, compact size, great warranty
- More Info: Hyundai.co.uk
3. Mazda 3 (2014–2017)
- Best For: Long-distance commuters, professionals
- Tax Band: Band C (Diesel variants with manual transmission)
- MPG: Over 60 mpg
- Why It’s Great: Luxurious feel, great driving dynamics, durable engine
- More Info: Mazda.co.uk
4. Skoda Fabia (2015–2017)
- Best For: Families on a budget, practical drivers
- Tax Band: Band C
- MPG: 60+ mpg
- Why It’s Great: Spacious cabin, low maintenance costs, dependable
- More Info: Skoda.co.uk
5. Kia Rio (2011–2017)
- Best For: Fuel-conscious drivers, students, long-distance travel
- Tax Band: Band C (1.4 CRDi)
- MPG: Up to 70 mpg
- Why It’s Great: Well-built, long-lasting, affordable insurance
- More Info: Kia.com/uk
How to Find a £20 Road Tax Vehicle
Step 1: Check Emission Banding
Visit GOV.uk vehicle tax rates and identify vehicles in Band C (101-110g/km). These are your ideal targets.
Step 2: Filter by Registration Date
Ensure the car was registered before April 1, 2017. Use filters on major platforms like AutoTrader and Cazoo to narrow your search.
Step 3: Verify with DVLA Tools
Before you buy, confirm a vehicle’s tax band and history by entering the registration number into the DVLA vehicle checker. This ensures the car meets Band C criteria.
Step 4: Get a Vehicle History Check
It’s important to avoid hidden surprises. Use services like HPI Check or TotalCarCheck to verify that the car has not been stolen, written off, or has outstanding finance.
Step 5: Consider Fuel Economy and Insurance
Beyond road tax, look at total ownership costs. Choose cars with high mpg ratings and low insurance groupings to maximize your savings.
Tax Changes from April 2025: What to Know
In April 2025, the UK government will end the road tax exemption for electric vehicles (EVs) and low-emission cars under Band A. This means:
- All EVs, including those with zero emissions, will start paying at least £10 in the first year, rising to a standard rate of £195 thereafter.
- Vehicles previously in Band A (up to 100g/km CO₂) will also be taxed under the new structure.
These changes are designed to balance government revenue as EV adoption increases. For budget-focused consumers, this could make pre-2025 EV purchases more appealing.
Source: UK Autumn Statement 2022
Tip: Lock in a great deal before April 2025 if you’re in the market for an electric vehicle or a highly efficient petrol/diesel model.
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FAQs about The Secret to £20 Road Tax
Q1: How can I check if a car qualifies for £20 road tax?
Use the DVLA vehicle tax checker. You’ll need the car’s registration number to verify it’s registered before April 1, 2017 and falls under Band C (101-110g/km).
Q2: Are diesel cars still worth buying?
Yes, especially models with low CO₂ emissions. Many diesel cars offer better fuel economy on long drives. However, watch out for ULEZ (Ultra Low Emission Zone) policies in cities like London. Details can be found on TFL.gov.uk.
Q3: Will these low-tax cars remain cheap to run long-term?
Typically, yes. But don’t forget to factor in other costs like insurance, routine maintenance, MOTs, and fuel. Also, future tax reform could eventually impact these models, so stay updated with GOV.UK guidance.
Q4: Can I find electric cars with low road tax?
Yes, for now. EVs registered before April 2025 remain tax-exempt until the new rules take effect. Top choices include the Nissan Leaf, BMW i3, and Renault Zoe.
Q5: Are there hidden costs when buying a used Band C car?
Sometimes. Always request a full service history, check for outstanding recalls, and confirm the mileage matches the vehicle’s age. Also, check if the vehicle needs a new timing belt or clutch, which can be costly repairs.
