VED explained

It looks like motorists may have dodged additional Vehicle Excise Duty hikes. In the autumn’s pre-budget report, the Government revealed plans to introduce special first year rates in April 2010. But there’s been no mention of this in the Chancellor’s main Budget speech.

If they do get the go ahead, new cars with CO2 emissions of less than 130g/km would pay nothing, while cars with emissions over 166g/km would pay £70 more than the usual £180 rate. The most-polluting cars would pay a £950 fee for the first year. Our table (below) reveals the current Vehicle Excise Duty rates, and how they are already set to change in May, and again in 2010.

Current and future VED rates for vehicles registered after 1 March 2001

Band : CO2 (g/km) - Current / 2009-10 / 2010-11

A : Up to 100 - £0 / £0 / £0
B: 101-110 - £35 / £35 / £20

C: 111-120 - £35 / £35 / £30

D: 121-130 - £120 / £120 / £90
E: 131-140 - £120 / £120 / £110

F: 141-150 - £120 / £125 / £125
G: 151-165 - £145 / £150 / £155

H: 166-175 - £170 / £175 / £180

I: 176-185 - £170 / £175 / £200
J: 186-200 - £210 / £215 / £235
K*: 201-225 - £210 / £215 / £245

L: 226-255 - £400 / £405 / £425

M: Over 255 - £400 / £405 / £435

Band K includes cars that have a CO2 figure over 225g/km but were registered before 23 March 2006. These cars will stay in band K.


Current and future VED rates for vehicles registered before 1 March 2001

Engine size (cc) Current rate 2009-10 2010-11
Not over 1549cc £120 £125 £125
Over 1549cc £185 £190 £205