An increase in Vehicle Excise Duty, in line with inflation, was confirmed in the Chancellor’s Spring Statement last month. The new rates took effect from 1 April.
The annual VED for cars when they are first registered is now as follows:
|Emissions (g/km) of CO2||First year rate petrol cars and RDE2 standard diesel cars||First Year rate non- RDE2 diesel cars||Alternative fuel cars|
Subsequent VED payments from the second year onwards are now £145 for petrol and diesel cars, and £135 for alternative fuel vehicles. Pure electric cars are exempt. Cars with a list price over £40,000 will pay a £310 supplement for five years from the second time the vehicle is taxed.
For cars first registered between 1 March, 2001, and 31 March, 2017, the VED rates are as follows:
|VED Band||CO2 emissions (g/km)||Standard rate*|
|A||Up to 100||£0|
* There is an alternative fuel discount in 2019/20 of £10 for all cars.
** includes cars emitting over 225 g/km registered before March 23, 2006.