Vehicle excise duty is a tax that car owners pay when they buy or import a vehicle, and it's set by the government. Vehicle Excise Duty (VED) is charged at different rates depending on what type of vehicle you're buying, and how much it costs. This includes cars, vans, motorcycles and other types of motorized vehicles. VED has been applied to both new diesel and petrol cars since 2001; however, the Treasury recently proposed an increase in Vehicle Excise Duty for new diesel and petrol cars with the rise of 2% on petrol and 4% on diesel vehicles.
This proposal was made to discourage people from buying these types of cars due to their higher emissions which will lead to better air quality for people living in towns and cities. Vehicle Excise Duty (VED) Vehicle owners pay Vehicle Excise Duty (VED) when they buy or import a car, motorcycle or other vehicles which uses petrol or diesel. Vehicle Excise Duty rates depend on the type of vehicle and how much it costs: Cars: Vehicle Excise Duty is based on CO2 emissions and starts from £40 for vehicles with emissions of 0-50g/km up to £1,090 for vehicles emitting over 255g/km. There are separate bands for cars that run purely on alternative fuels such as electricity, LPG and CNG. Vans: Vans weighing under 1,350kg have a flat rate of £165