In July, the Chancellor announced new Vehicle Excise Duty (VED) rates, which will come into effect (for new cars only) on 1st April 2017. The scheme will introduce charges across the board for carbon dioxide emitting vehicles, therefore removing exemptions which are currently in place.
The first year of the scheme will see a wider range of rating categories based solely on emissions. Only zero-rated vehicles will be exempt from tax initially.
From year two onwards all vehicles will be subject to a standard rate of £140 per annum. Those vehicles priced above £40,000 will be subject to a £310 supplement on top of the standard rate (£450 in all) for five years.