This year, vehicle excise duty (VED) is to be shaken up to account for tough new emission tests from 6 April 2020. The new regulations will make CO2 emissions more 'real world' and this will push up the cost of greenhouse gasses cars officially pump out on paper. On average, CO2 figures rise by around 20 per cent from NEDC to WLTP tests. Therefore this large shift in VED rates is required to avoid any increase in bills.
Under the new road tax system, all cars are divided into one of 13 bands for the first year of registration based on the vehicle's CO2 emissions. From the second year of registration onwards, a three band system takes over. These three bands are: zero emissions, standard and premium. Zero-emission vehicles under the value of £40,000 will pay no tax whatsoever, whereas standard cars will cost £140 every year from year two moving forward. Any vehicle that emits CO2 and costs over £40,000 will cost £450 per year from the second year, until the sixth year after registration when it will cost £140 per year.
It all sounds very complicated to us, so we've put together a simple table which will hopefully make these road tax changes a bit clearer. Take a look below...
|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)|
So, if you're planning on buying a brand new car, now really is the time to buy! Contact your local Vantage centre today to avoid disappointment (and the road tax (VED) increase).
*Payable for 5 years