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There are thirteen CO2 tax bands which relate to different emissions levels and amounts of car tax payable.
The list price influences whether the buyer needs to pay the Standard Rate or Premium Rate, with those vehicles with a list of £40,000 or more paying the latter for years two to six.
VED, which is collected and enforced by the Driver and Vehicle Licensing Agency (DVLA), raised Vehicle tax was introduced in the 1888 budget and the current system of excise duty applying specifically to motor vehicles was introduced in 1920.
This excise duty was ring-fenced (earmarked) for road construction and was paid directly into a special Road Fund from 1920 until 1937 after which it was treated as general taxation.
For cars registered before 01 March 2001, car tax is charged according to engine size as measured in cubic centimeters or 'cc'.
The Daily Telegraph first revealed the tax plans in March and has campaigned against them ever since.
The damning verdict of the Environmental Audit Committee, on the proposals to increase road taxes next year, will now lead to even greater pressure on the Prime Minister to abandon the controversial measure.
The rise in road tax offered "little benefit" to the environment and gave green taxes "a bad name", the MPs said.
You will only get backdating for the period you met the qualifying rules; so if you only met the rules, for example, two weeks before your date of claim, you will only get two weeks' extra money.
You should check your tax credits award notices carefully to make sure any backdating has been included properly.