Overview
- The standard Vehicle Excise Duty rises to £200 a year from £195 for renewals from April, covering petrol, diesel, hybrid and electric cars.
- New models emitting over 255g/km of CO2 registered from April face first-year VED up to £5,690, with a published list naming 59 affected petrol and diesel vehicles.
- Battery electric cars pay £10 in the first year then the standard rate, and the Expensive Car Supplement threshold for EVs increases to £50,000 from April 1.
- Owners of cars first registered between March 2001 and April 2017 in the highest-polluting band will see annual VED rise from £750 to £790.
- From April 2028 a new mileage charge will apply at 3p per mile for battery electric cars and 1.5p for plug-in hybrids, which analysts estimate could cost about £255 a year for an average EV driver.