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DVLA clarify 2017 VED scheme

DVLA clarify 2017 VED scheme
26 July 2016

New Vehicle Excise Duty (VED) rates will come into effect (for new cars only) on 1st April 2017, applying a wider range of rating categories based solely on emissions in the first year. From year two, all vehicles will be subject to a standard rate of £140 per annum, but those priced above £40,000 will be subject to a £310 supplement per annum for five years.

The DVLA has now informed us that the following will be included in the vehicle price calculation:

  • The Recommended Retail Price (RRP) determined by the manufacturer, including VAT
  • Non-standard accessories ordered by the customer
  • The cost of batteries (for electric or hybrid vehicles)
  • Delivery charges

Vehicles can be registered in advance with the DVLA 14 days before the new plate dates. Under these circumstances the DVLA will take the RRP defined by the manufacturer the day before the advanced registration has been made, to ensure that any change in the 14-day period will not affect the VED rate applied.