Rates of VED
For cars first registered on or after 1 April 2017, a new VED banding system is to be introduced. This is designed to reflect the fact that the CO2 emissions of new cars have fallen significantly since the emissions-based system was introduced in 2001.
The first year rate of VED will vary between £0 and £2,000 depending upon the CO2 emissions of the vehicle. Thereafter there will be a standard rate of £140 per year for all cars, except those with zero CO2 emissions for which the rate is £0. Cars with a list price above £40,000 will attract a supplement of £310 for each of the first five years in which the standard rate is paid.
All other cars will remain in the existing banding system.