Drivers to pay up to £140 extra in tax from April - full list of new rates

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A hike in Vehicle Excise Duty (VED) will see motorists forced to fork out more on taxing their cars, vans and bikes

The tax will increase in line with inflation and will be calculated by the Retail Price Index , which is expected to be roughly 6 per cent.

VED is based on the type and age of a vehicle so drivers will see different increases depending on what they drive and how much CO2 their vehicle emits. Old petrol and diesel cars will see less dramatic increases when compared to newer vehicles with high CO2 levels.

VED varies depending on when the vehicle was first registered since the new rates are not being retroactively implemented. If your vehicle was registered before April 1, 2017, your VED will still be based on the old system. Overall, VED is based on two rates which takes into account a vehicle's first year on the road which will vary depending on its CO2 emissions. Following the first year, it will be taxed onward based on what type of fuel the vehicle uses.

Electric cars are still free from all VED charges for another year, with fees starting from April 2025.VED tax bands for first-year cars from April 1 VED rates for cars registered between March 1, 2001 and March 31, 2007

 

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