News

Budget 2008: New road tax rates

  • Road tax increases
  • VED bands A and B unchanged
  • All other rates increased
Words ByWhat Car? Staff

Need a valuation?

Obtain a FREE used car valuation for any vehicle.

GB

An article image

Chancellor Alistair Darling has announced increases to Vehicle Excise Duty D (road tax) from tomorrow.

Only owners of cars in VED bands A and B those that emit less than 120g/km of carbon dioxide - won't pay any more in road tax.

VED for petrol and diesel cars
Band A (up to 100g/km CO2) no fee
Band B (101-120g/km CO2) 35
Band C (121-150g/km CO2) 120 5 increase
Band D (151-165g/km CO2) 145 5 increase
Band E (166-185g/km CO2) 170 5 increase
Band F (185g/km to 225 CO2)210 5 increase
Band G (226g/km and above ) *385 100 increase

VED for alternatively powered cars
Band A (up to 100g/km CO2) no fee
Band B (101-120g/km CO2) 15
Band C (121-150g/km CO2) 100 5 increase
Band D (151-165g/km CO2) 125 5 increase
Band E (166-185g/km CO2) 150 5 increase
Band F (185g/km to 225 CO2)195 5 increase
Band G (226g/km and above ) *385 100 increase

Changes to VED rates will take effect from 13 March 2008. VED rates for all cars registered before 2001 will rise by 5.

  • For new cars registered from 23 March 2007