- First year rates of VED will vary according to how much carbon dioxide the vehicle emits.
- From the second licence (i.e. on change of keepership), a flat standard rate of £140 for all petrol/diesel cars and £130 for alternative fuels will apply.
- Vehicles with a list price of £40,000 or above will attract an additional rate of £310 per year for the first five years after the end of the first licence.
- From 1st April there will be a requirement for retailers to capture the list price for all new cars and some motor homes (M1, M1SP and M1G categories).
- The list price is defined as the individual retail price published by the manufacturer, importer or distributor on the day before the vehicle is taxed or registered. For electric vehicles, this is the price before any grants or discounts are applied.
- Where no list price is provided, a ‘notional price’ should be applied to indicate what a reasonable expectation of the list price would be.
- The list/notional price includes:
- Manufacturers Recommended Retail Price
- Price of any non-standard fitted option, fitted by the manufacturer
- Delivery and pre-delivery inspection charges
- Cost of a battery if an electric vehicle (if the battery is leased)
- VAT
- The list/notional price is to be reported by retailers on a new field provided on V55/1 and V55/2 forms, and on the AFRL system.
26 January 2017
With new Vehicle Excise Duty (VED) rates due to come into effect (for new cars only) on 1 April, here is a reminder of the key changes: