Advertisement

New vans to face lower vehicle taxes under Treasury proposals

Treasury to launch consultation into lower VED tax rates for the "cleanest vans" ahead of tax hikes for diesel cars

Van drivers and businesses purchasing a new low-emissions commercial vehicle in the future may face lower vehicle tax rates, the Treasury has said. 

In his spring statement, Chancellor Philip Hammond said the Treasury will launch a consultation into reduced Vehicle Excise Duty (VED) rates for the "cleanest vans".

Company van tax explained

Advertisement - Article continues below

Hammond said: “This Government is determined that our generation should leave the natural environment in a better state than we found it, and improve the air we breathe.

“Following our successful intervention to incentivise clean taxis, we will help the great British white van driver go green with a consultation into reduced VED rates into the cleanest vans.”

VED road tax: everything you need to know about the UK car tax changes 

The news comes just days before new diesel cars will be hit with higher taxes. New diesel cars that fail to meet the latest Euro 6 emissions standards under real-world testing will move up a tax band from 1 April 2018 onwards. Announced in the 2017 Autumn budget, new diesel cars have to meet the Real Driving Emissions limits for nitrogen oxide to stay within their current tax bands.  

The Treasury previously said the new taxes will impact two million new cars, but said new diesel vans were exempt from the tax hikes in order to protect the white van driver. 

Do you support the Government's plans to lower VED for low-emissions vans? Tell us in the comments below... 

Advertisement
Advertisement

Recommended

“This is a golden era for vans”
Opinion

“This is a golden era for vans”

Light commercial vehicles are not only crucial to the way we shop now but also standard bearers for the switch to electric power, says Dean Gibson…
17 Jun 2020
Maxus launches new flagship Deliver 9 panel van
Vans

Maxus launches new flagship Deliver 9 panel van

Chinese-owned Maxus has launched a fresh rival for the Ford Transit, with a 161bhp diesel engine and a maximum 1.3-tonne payload
15 Jun 2020
New 2020 Maxus e Deliver 3 all-electric panel van launched
LDV

New 2020 Maxus e Deliver 3 all-electric panel van launched

The dinky Chinese electric van can cover a maximum of 150 miles between charges and haul up to a tonne of cargo
15 Jun 2020
New 2020 Fiat e-Ducato pilot scheme launched
Fiat Ducato

New 2020 Fiat e-Ducato pilot scheme launched

The all-electric Fiat e-Ducato panel van is being tested by a handful of businesses, ahead of its general market release at the end of the year
8 Jun 2020

Most Popular

New 2020 Ford Puma ST teased for the first time
Ford Puma

New 2020 Ford Puma ST teased for the first time

The sporty new Ford Puma ST will make its debut later this year, with the same 197bhp 1.5-litre three-cylinder engine as the Fiesta ST
3 Jul 2020
New Skoda Octavia vRS line-up completed as petrol and diesel models arrive
Skoda Octavia vRS Hatchback

New Skoda Octavia vRS line-up completed as petrol and diesel models arrive

Skoda has unwrapped the complete Octavia line-up, which now offers a choice of petrol, diesel or plug-in hybrid powertrains
3 Jul 2020
New Vauxhall Corsa-e 2020 review
Vauxhall Corsa-e hatchback

New Vauxhall Corsa-e 2020 review

The all-electric Vauxhall Corsa-e boasts up to 134bhp and a 209-mile range, but rivals offer better value for money
3 Jul 2020