In United Kingdom, the cars which produce less than 100 grams per kilometre (g/km) of Carbon Dioxide (CO2) are nontaxable. In simple words, every car that emits 99g/km or less CO2 is placed in to band A, so you would not have to send the tax to DVLA every year! Having a car that avoids Vehicle Excise Duty (VED) road tax would benefit you a lot as it would enable you to save that money or spend it on something else you want. This kind of cars not only save you money but also help you save the environment!

Today we have a list of Top 10 UK cheapest new cars with free VED road tax. So if you are planning to buy a new car, then you should definitely check this list out as they are actually some of the most affordable new cars to buy and run on the road. Not only that, they also return an impressive 67.3mpg and the prices start around £14,000 and fall to about £8,000! In short, this list boasts some of the most cost-effective cars to have. This list descends from the most expensive to the cheapest.

You can learn Fuel Consumption units From Gram of CO2 per Km (Diesel) to mile per gallon (UK) click here.

If You like this article, you might be interested on Most Expensive Cars of 2012.

Top 10 UK Cheapest New Cars With Free VED Road Tax

10. Chrysler Ypsilon 0.9 TwinAir SE 5dr

Price: £13,195
67.3mpg
99g/km

Chrysler Ypsilon 0.9 TwinAir SE 5dr

In some other places it is sold as a Lancia. After Fiat’s association with Chrysler, it gets the popular American badge in the UK. It is quite similar to Fiat 500 but has a little longer wheelbase. It boasts Fiat’s super-economical 0.9-litre TwinAir petrol engine, returns 67.3mpg and is free of road tax.

9. Peugeot 207 1.6 HDi Oxygo 3dr

Price: £12,645
74.3mpg
98g/km

Peugeot 207 1.6 HDi Oxygo 3dr.jpg

Peugeot 207 is equipped with a 1.6 HDi diesel engine along with a Oxygo package of eco-tyres and aero modifications. It is definitely free of road tax. It is a very practical supermini car. Its five-door version is also tax free but it costs £600 more.

8. Renault Clio Expression 1.5 dCi 88 ECO 3dr

Price: £12,450
78.5mpg
94g/km

Renault Clio Expression 1.5 dCi 88 ECO 3dr

This car comes with a 1.5-litre dCi diesel engine. This car from Renault is the most eco-friendly version in the Clio — thanks to fuel-saving modifications. Its five-door version also comes in road tax band A but it costs £600 more.

7. Fiat 500 0.9 TwinAir Pop 3dr

Price: £11,600
68.9mpg
95g/km

Fiat 500 0.9 TwinAir Pop 3dr

Fiat 500 uses a two-cylinder TwinAir petrol engine that helps emit as little as just 95g/km of CO2. It is a great little eco-friendly car. If you want even better economy, then you can go for the Dualogic automatic gearbox, that actually ameliorates combined cycle consumption from 68.9mpg to 70.6mpg but you would have to pay £745 more.

6. Nissan Micra 1.2 DIG-S Visia 5dr

Price: £11,150
68.9mpg
95g/km

Nissan Micra 1.2 DIG-S Visia 5dr

Nissan Micra is one of the cheapest tax-free supermini car out there. Although it is not quite roomy or an all-rounder like Ford Fiesta but it is surely the last supermini before the list of diminutive city cars starts. It runs on petrol, uses a clever 1.2-litre DIG-S engine and returns 68.9mpg.

5. Toyota iQ 1.0 VVT-i 3dr

Price: £10,655
64.2mpg
99g/km

Toyota iQ 1.0 VVT-i 3dr

Toyota iQ comes with an unusual 3+1 seating layout. It boasts a tiny variable-valve-timing petrol engine and returns 64.2mpg. Its upgraded plusher ’2′ trim version costs over £1,000.

4. Hyundai i10 1.0 Blue 5dr

Price: £9,345
67.3mpg
99g/km

Hyundai i10 1.0 Blue 5dr

Hyundai’s both, i20 supermini and i10 city car are on the list. Although i10 is not vey stylish as some of the others but it is definitely quite well-built, practical, cheap and economical. It boasts a 1.0-litre petrol engine. Cool, right?

3. Volkswagen Up! Move Up! 1.0 BlueMotion Technology

Price: £9,330
67.2mpg
97g/km

Volkswagen Up! Move Up! 1.0 BlueMotion Technology

It is the cleanest and cheapest version of Volkswagen Up! The BlueMotion Technology has made some alterations to bring this car under the 100g/km barrier. Its sister vehicles, SEAT Mii and Skoda Citigo, are also expected to come soon.

2. Smart fortwo Pulse 1.0 Mhd 2dr

Price: £9,200
67.3mpg
97g/km

Smart fortwo Pulse 1.0 Mhd 2dr

Smart fortwo Pulse is a two-door and two-seater car which looks stunning. It has various models that come in band A, so they are all road tax free. Smart’s 0.8-litre diesel version returns 85.6mpg but its cheapest tax-free version utilizes a 1.0 petrol engine with Micro Hybrid Drive (mhd). mhd is just Smart-speak for stop/start, while it is not actually a hybrid.

1. Kia Picanto 1.0 1 3dr

Price: £7,795
67.3mpg
99g/km

Kia Picanto 1.0 1 3dr

Kia Picanto is really cheap; and uses a 1.0-litre petrol engine and returns 67.3mpg. It emits only 99g/km of CO2. It is the cheapest tax-free car in this list. If you want a more practical five-door bodystyle with Air and 2 trim levels, then you only have to pay £200 more.