New rates for road tax confirmed

New rates for road tax confirmed

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
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
151-165 
£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.