The change is set to be introduced on 1st April 2020 for Vehicle Excise Duty and 6th April 2020 for Benefit-in-Kind on Company Car Tax. Remember, the change will only affect your very first Vehicle Excise Duty payment when you buy and register a new vehicle after these dates.
The new WLTP method reflects better real driving conditions to provide a more accurate representation of your vehicle's emissions and fuel economy. Unfortunately, the NEDC method of testing has now become outdated and does not provide an accurate interpretation of your vehicle.
Of course you're now wondering what this all means for you. Using the table below, you will be able to calculate which tax band your vehicle would be in if you were to buy it after 6th April 2020:
|VED Band||CO2 Emissions (g/km)||First-Year Rate||First-Year Rate for non-RDE2 Diesels||Alternative Fuel Vehicles|
|B||1 - 50||£10||£25||£0|
|C||51 - 75||£25||£110||£15|
|D||76 - 90||£110||£130||£100|
|E||91 - 100||£130||£150||£120|
|F||101 - 110||£150||£170||£140|
|G||111 - 130||£170||£210||£160|
|H||131 - 150||£210||£535||£200|
|I||151 - 170||£530||£855||£520|
|J||171 - 190||£855||£1,280||£845|
|K||191 - 225||£1,280||£1,815||£1,270|
|L||226 - 255||£1,815||£2,135||£1,805|
Buying your new car before the April 2020 road tax increases could save you a fair bit of money on the first year of Vehicle Excise Duty. Take our example of the PEUGEOT 3008 which encounters one of the biggest VED increases of the PEUGEOT range.
|Model||PEUGEOT 3008 SUV PureTech 130 EAT8 |
|Current VED tax band (and rate)||G (£170)|
|VED tax band (and rate) from 1st April 2020||H (£535)|
|Difference of VED||£365|