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Autumn Budget 2017
Plug-in grants Motorists (private or business) purchasing new qualifying ultra-low emission cars can receive a grant of 35% towards the cost of the vehicle, up to a maximum of either £2,500 or £4,500 depending on the model. The scheme also covers new qualifying ultra-low emission vans, where the available grant will be 20% towards the cost of the vehicle, up to a maximum of £8,000. Vehicles with CO 2 emissions of 75 g/km or less, including electric, plug-in hybrid and hydrogen-fuelled cars, are potentially eligible for the subsidy. There are strict criteria to be met before specific vehicles can be confirmed as eligible under the rules of the scheme.
Vehicle Excise Duty (VED) rates VED bands and rates from 1 April 2018 for cars first registered on or after 1 April 2017 emissions as set out in the table to the right. However, in the Autumn Budget it was announced that 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 £140 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 £310 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. For the first year this is based on CO 2
CO
2 emissions (g/km) First year rate 0 £0 1 - 50 £10 51 - 75 £25 76 - 90 £105 91 - 100 £125 101 - 110 £145 111 - 130 £165 131 - 150 £205 151 - 170 £515 171 - 190 £830 191 - 225 £1,240 226 - 255 £1,760 Over 255 £2,070
Alternative fuel vehicles continue to receive a £10 reduction on the standard and first year rates.
Standard rates which apply from 1 April 2018 for cars registered from 1 March 2001 to 31 March 2017
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
£120 £140 £155 £195 £230 £250 £290 £315 £540 £555
I
J
*Standard rate is reduced by £10 for alternative fuel vehicles with CO 2 emissions above 100 g/km. **Includes cars emitting over 225 g/km that were registered before 23 March 2006.
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