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 | First Year rate non- | Alternative fuel |
0 | £0 | £0 | £0 |
1-50 | £10 | £25 | £0 |
51-75 | £25 | £110 | £15 |
76-90 | £110 | £130 | £100 |
91-100 | £130 | £150 | £120 |
101-110 | £150 | £170 | £140 |
111-130 | £170 | £210 | £160 |
131-150 | £210 | £530 | £200 |
151-170 | £530 | £855 | £520 |
171-190 | £855 | £1,280 | £845 |
191-225 | £1,280 | £1,815 | £1,270 |
226-255 | £1,815 | £2,135 | £1,805 |
Over 255 | £2,135 | £2,135 | £2,125 |
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 |
B | 101-110 | £20 |
C | 111-120 | £30 |
D | 121-130 | £125 |
E | 131-140 | £145 |
F | 141-150 | £160 |
G | 151-166 | £200 |
H | 166-175 | £235 |
I | 176-185 | £260 |
J | 186-200 | £300 |
K** | 201-225 | £325 |
L | 226-255 | £555 |
M | Over 255 | £570 |
* 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.