Budget Today - Vehicle Tax......??

[BigPritch]

Am I reading this right :-

• Vehicle Excise Duty paid by owners of all but the most efficient new petrol cars to double in their first year, to encourage shift to electric vehicles

Anyone know how this will affect 'older' diesel models, surely our Vehicle tax won't double ???

Confused...

 

[Betsycalifornia]

This is on the car wow site

Zero-emission vehicles will pay £10 for the first year, while cars emitting less than 50 g/km of CO2 will pay £110. This is up from £10 currently and it includes hybrids, which previously paid £0. All cars emitting 50-70g/km of CO2 now pay an extra £100 in the first year, taking it to £130. All cars emitting over 75g/gm of CO2 will see their first-year tax rates double.

Doesn’t appear to affect post first year, but I’m open to correction

 

[larrylamb]

From RAC,​

​

Road Tax (VED)​

First year Vehicle Excise Duty (VED) rates for new cars have been overhauled, with significant rises for certain vehicles from 1st April 2025. According to the Government, the measures have been designed to “strengthen incentives to purchase zero emission and electric cars” by “widening the differentials between zero emission, hybrid and internal combustion engine (ICE) cars.

The biggest news is the ten-fold increase in first-year car tax rates for cars emitting between 1-50g/km of CO2, which includes hybrids. These will increase from the current rate of £10 for petrol and diesel cars (or zero for hybrids) to £110. The vast majority of plug-in hybrid cars fall into this band.

Rates for new cars emitting between 51-75g/km of CO2 will increase from £30 (or £20 for hybrids) to £135. All other rates will double next year, meaning the owner of a new VW Golf 1.5 TSI will pay an extra £220 in the first year. By contrast, a new BMW X5 M60i will have £2,745 added to the cost of the first-year rate.

Standard VED rates for beyond the first year will rise in line with the Retail Price Index (RPI) as is usually the case. The Government will “consider raising” the threshold for the current Expensive Car Supplement for electric cars “only at a future fiscal event”. Currently cars of any type costing over £40,000 when new are liable for an extra £410 a year VED charge for five years after registration.

Furthermore, Benefit-in-Kind tax rates for company cars will be maintained at 2% until 2026. Double-cab pick-ups will also be treated as cars for capital allowances, Benefit-in-Kind taxation and deduction from business profits from April next year.

 

[BigPritch]

Thanks all...