Vehicle Excise Duty (VED) Rates: A Guide to the Changes

The UK government has announced changes to the Vehicle Excise Duty (VED) rates, which will come into effect from April 1st. The changes aim to simplify the tax system and provide more clarity for drivers.

How the Changes Affect Cars Registered Between 1985 and 2001

Cars registered between 1985 and 2001 will continue to pay tax based on their engine size. This means that drivers of these vehicles will not be affected by the changes to the VED rates. * The engine size will remain the same for these vehicles, and the tax rate will be based on the same bands as before.

This is because the government has decided to introduce a new car tax system that will be based on the vehicle’s CO2 emissions.

The New Car Tax System

The new car tax system will be based on the vehicle’s CO2 emissions, with the goal of reducing the number of cars on the road that produce high levels of greenhouse gases.

The standard rates will be increased by 3.5% to reflect the rising cost of living and inflation.

The Impact of the Standard Uprating on Vehicle Owners

The standard uprating will affect all vehicle owners who pay Vehicle Excise Duty (VED) on their cars, vans, motorcycles, and motorcycle trade licenses. The increase in standard rates will be applied to all vehicles, regardless of their age, size, or type. * The standard uprating will apply to the following vehicles:*

How the Standard Uprating Will Affect Vehicle Owners

The standard uprating will result in an increase in the standard rates for all vehicles. The exact amount of the increase will depend on the type of vehicle and the current standard rate. For example, the standard rate for a car will increase by 3.5% of the current standard rate. * The increase in standard rates will be calculated as follows:*

Examples of the Standard Uprating

To illustrate the impact of the standard uprating, let’s consider an example.