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

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... 

Most Popular

‘Forget leasing a car, a cut-price van should be your next everyday vehicle’
Opinion - Fiat Scudo
Opinion

‘Forget leasing a car, a cut-price van should be your next everyday vehicle’

With some huge savings to be had, Mike Rutherford thinks a van could be the perfect vehicle
3 Dec 2023
New Renault 5: price, specs, launch and on sale dates
Renault 5 EV concept at 2022 Goodwood Festival of Speed
News

New Renault 5: price, specs, launch and on sale dates

Renault’s reborn Renault 5 will start from €25,000 in Europe, suggesting a circa-£30k price in the UK. It's due on sale in the summer of 2024. Here's …
1 Dec 2023
Deal of the Day: Vauxhall Grandland is an ideal family SUV for £210 per month
Vauxhall Grandland front cornering
News

Deal of the Day: Vauxhall Grandland is an ideal family SUV for £210 per month

Vauxhall’s largest SUV can be had for the same price as most superminis, making it our Deal of the Day for 1 December
1 Dec 2023