VED

[NewcastleFalcon]

Having never troubled the scorers with the purchase of a new car, I hadn't realised the slightly odd system of Vehicle Excise duty which has applied for all cars registered after 1st April 2017. Gets tinkered with all the time of course. As of today this is what the Gov.uk website shows...
So the first year is determined by CO2 emissions.

gov.uk first year VED rates

The Second-year onwards is determined by fuel-type, with cars costing more than £40,000 list price having an additional £320/year VED for 5 years. The Chancellor announced in the budget the removal of Vehicle Excise Duty (VED) for zero-emission cars with a list price exceeding £40,000, starting from April 2020

gov.uk second year onwards VED rates

REgards Neil

[myglaren]

Strange. I have just paid £160 for mine and there is nothing corresponding on the lists.

[RichardW]

That list is for cars reg after 1st April 2017 - the idea is to push new car buyers towards lower CO2 cars, but without penalising later buyers (who it is assumed have less disposable cash). The over £40k 'supplement' just seems a bit vindictive! Cars between 2001 and 2017 continue to be taxed on graduated VED - which means if buying s 17 plate you need to aware of which system it comes under!

[NewcastleFalcon]

I guess the first year bit all gets wrapped up in the on the road price. I wonder what vehicles currently sold still fit into the higher first year tax categories over £1,000.

The usual suspects it would seem, and those for which the prospective buyers aren’t going to be put off by a couple of grand first year car tax
https://motorway.co.uk/blog/2018/04/24/ ... t-road-tax


Regards Neil

[quintet]

This post may be deleted by Admin if it's not in the correct location/and/or Im bumping an historic thread.

Has anyone looked into the 2025/26 VED tariffs? I'm hearing unpleasant things for older cars but despite checking several different websites I can't get a straight answer, in fact the results always conflict and don't mention which tax year the website is displaying (ie 2024/25 or 2025/26).

I think my car is Cat E @ 138g/km (going off memory) and some sites are saying VED is going to be in the region of £680.00 a year! Whilst others say different (see below). If my VED is about to take a massive hike, 1 I can't afford it & 2, there's no point in me spending several hundred pounds on it before the end of March (as currently planned) if I can't afford to then tax it. I normally let my direct debit run on each year & don't bother seeing what it'll cost but the stories I've heard from others about massive hikes got me checking and it's not looking good.

https://www.whatcar.com/advice/owning/h ... ined/n1153

[RichardW]

That figure only applies to new cars in the first year. I can't find rates for existing cars published yet, but should only increase by about 2-3pc. ZEV post April 2017 will have to pay the flat rate now, which is going up to £195 I think.

[myglaren]

That figure only applies to new cars in the first year. I can't find rates for existing cars published yet, but should only increase by about 2-3pc. ZEV post April 2017 will have to pay the flat rate now, which is going up to £195 I think.

Pleased to hear that.
I have kept meaning to look into it but haven't 'got round to it' yet.
I expect my replacement Mazda 6 to be ready soon and was hoping to get it taxed before the new rates were imposed. For what I use the car these days I would probably give it up had those rates applied to mine.

[GiveMeABreak]

That figure only applies to new cars in the first year. I can't find rates for existing cars published yet, but should only increase by about 2-3pc. ZEV post April 2017 will have to pay the flat rate now, which is going up to £195 I think.

That's exactly how I read it. The confusion comes from the new car rates for vehicles registered after 2017.

Tax bands for cars registered after March 2001 and before April 2017 are as follows from April 2025:

VED band	CO2 emissions	Annual rate
A	Up to 100g/km	£0
B	101-110g/km	£20
C	111-120g/km	£35
D	121-130g/km	£160
E	131-140g/km	£190
F	141-150g/km	£210
G	151-165g/km	£255
H	166-175g/km	£305
I	176-185g/km	£335
J	186-200g/km	£385
K	201-225g/km	£415
L	226-255g/km	£710
M	Over 255g/km	£735

[Paul-R]

Glad to see that Band A is still £0.

[quintet]

Glad to see that Band A is still £0.

I'm not sure it is, as far as i'm aware band A is being abolished, but i could (and hopefully in many people's cases) be wrong.

[CitroJim]

Glad to see that Band A is still £0.

I'm not sure it is, as far as i'm aware band A is being abolished, but i could (and hopefully in many people's cases) be wrong.

I'm hoping it stays - I have a vehicle in that band

I trust there'll be no changes in the Historic class - I have two rapidly heading in that direction...

[RichardW]

Yes, Marc's table appears to be 24/25 rates. I found this which purports to give the updated rates - band A will now have to pay £20 - sorry Jim! It cuts off the top rate, this goes up to £760

https://www.cinch.co.uk/news/car-tax-april-2025

Those with EVs post 2017 can apply for another year's free tax before 1st April (effectively taxing it twice at £0) - presumably ICE cars in band A could do the same.

As far as I know the 40 year rolling exemption for historic vehicles continues.

[Skull]

Those with EVs post 2017 can apply for another year's free tax before 1st April (effectively taxing it twice at £0)

Yes I told my son about this last year for his (2018) VW e-Golf.

My Xantia HDi (2000) is already £345 (Jan '25 >)

[mickthemaverick]

This thread inspired me to check mine out, I've just renewed both but next time round I'll be paying £750 for the pair I think they should allow a discount for a second vehicle with sole driver insurance as I can't drive them both at the same time!!

[ekjdm14]

Will have to look into this, could be we're getting the 406 on the road just in time to avoid the increase but interested/worried how it'll affect us next year with our cars being '95 '96 '97 and '98 registered.