7
Autumn Budget 2018
Plug-in grants The government has reformed the plug-in grant scheme, which offers grants towards the purchase of new qualifying ultra-low emission cars. The scheme will now focus on zero emission models such as pure electric and hydrogen fuel cell cars. By 9 November 2018 at the latest, the grant rate for Category 1 vehicles will reduce from £4,500 to £3,500 and Category 2 and 3 vehicles will no longer be eligible. The government has rolled out new plug-in van and motorcycle grants.
Vehicle Excise Duty (VED) rates VED bands and rates from 1 April 2019 for cars first registered on or after 1 April 2017 emissions as set out in the table to the right. However, new diesel vehicles registered after 1 April 2018 that do not meet the RDE2 standard will be charged a supplement on their First Year Rate to the effect of moving up by one VED band. After the first year, all vehicles with zero emissions will be exempt from the standard rate of vehicle tax, and all other petrol or diesel vehicles will pay a standard rate of £145 a year. An additional rate will be added to the vehicle tax for all new vehicles with a list price of over £40,000 (including zero emission vehicles). This additional rate of £320 will be payable each year for five years from the end of the first vehicle licence. After the five year period the standard rate will apply. The government proposes to change to the new worldwide harmonised light vehicle testing procedure (WLTP) for measuring CO 2 emissions. Standard rates which apply from 1 April 2019 for cars registered from 1 March 2001 to 31 March 2017 For the first year this is based on CO 2
CO
2 emissions (g/km)
First year rate
0
£0
1 - 50
£10 £25
51 - 75 76 - 90 91 - 100 101 - 110 111 - 130 131 - 150 151 - 170 171 - 190 191 - 225 226 - 255 Over 255
£110 £130 £150 £170 £210 £530 £855
£1,280 £1,815 £2,135
CO
emissions (g/km)
2
VED Band
Standard rate
A B C D E F G H
Up to 100 101-110 111-120 121-130 131-140 141-150 151-165 166-175 176-185 186-200 201-225 226-255 Over 255
£0
£20 £30
£125 £145 £160 £200 £235 £260 £300 £325 £555 £570
I
J
K*
L
M
*Includes cars emitting over 225 g/km that were registered before 23 March 2006.
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