Acknowledgements: Nic Fasci and Iain Ross
This month (March, 2006) has seen the new car tax bands announced by the Chancellor of the Exchequer, Gordon Brown. Bless him - from what was once a nice, simple to understand single-rate tax system, we're now faced with no less than 22 different tax bands! How does your MG fit into the scheme of things?
The new tax system and Pre-2001 MGFs
Did you know?
Interestingly, even if the 1.6 litre MGF had been launched ahead of the arbitrary March 2001 cut off point, it would still be in the same taxation bracket at its larger-engined brethren - the actual capacity of the 1.6 litre is 1588cc!
Easiest to understand are MGFs built and registered prior to March 1st, 2001.
All MGFs built prior to this date were 1.8 litre models - and thus come into the over 1549cc taxation bracket - i.e. Ј175 per annum (price correct at the time of the 2006 budget). That represents a modest Ј5 per annum increase in
the tax bill over the previous year for owners of early MGFs.
The new tax system and Post-2001 MGF and TFs
Thereafter, things get a good deal more complicated - as the cars now become banded according to exhaust emissions - principally CO 2 - the most significant "green-house" gas emitted by internal combustion engines.
Since March, 2001, engines have been homologated to assess the CO 2 output per kilometre travelled. Clearly, less economical cars will have a far higher CO 2 rating (which is recorded as grams per kilometre g/km), and more economical vehicles, a lower CO 2 rating. There are now 6 tax bands according to these emissions - with a seventh being added this year for heavily polluting vehicles (that happily, does not include any model in the MGTF range).
The ratings for all MGF and TF models are mentioned here. but effectively, there are just two tax-bands that effect the MGF/TF - bands E and F.
Summary of how MGF and MGTF models fit into the new tax bands