Stay ahead of the taxman with VED increases

This April sees the introduction of new rates of Vehicle Excise Duty, meaning those investing in a brand-new car will be subject to one of the 13 new taxation bands that make up the tax system. These new charges - detailed below - come into effect from April 6, 2020 and have been introduced to account for the tougher emissions testing processes that seek to provide a more accurate assessment of ‘real world’ emissions.

At present, CO2 emissions are calculated using the New European Driving Cycle (NEDC) laboratory tests but are being switched to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), with the results being more accurate and resulting in a 20% average increased in comparison. As a result, the Vehicle Excise Duty rates have had to be revised in order to accommodate such changes and limit increases in charges.

With the forthcoming changes, motorists can expect to fall into one of 13 bands for the first year of registration, followed by a three-band system thereafter.

CO2 Emissions (g/km)

Diesel cars (TC49) that meet the RDE2 standard and petrol cars (TC48)

All other diesel cars (TC49)

Alternative fuel cars (TC59)

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

It may all seem somewhat complicated to stay on top of all the changes to VED, but you can rest assured that we at Hodgson Motor Group will be able to provide you with all you need to know when the time comes to choosing your next new car.The three-tier band system, meanwhile, encompasses zero emissions, standard and premium. Those models emitting zero CO2 and are valued under £40,000 are free from road tax; standard cars will be charged at £140 per year; and premium models costing in excess of £40,000 and emitting CO2 will be charged £450 per year up to six years, after which the cost drops to £140 annually.

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