VED rates to rise in April due to higher CO2 rates

[FROSTYBALLS]

The Vehicle Excise Duty in the first year for new cars is based on CO2 emissions. Up to 5th April 2020, the CO2 rates used are from the old New European Driving Cycle (NEDC).

However from 6th April the CO2 rates will be from the Worldwide harmonised Light vehicle Test Procedure (WTLP). 

Generally the WTLP tests reveal higher CO2 emissions.

For example the NEDC CO2 emissions for the Corolla 1.8 hybrid are 76 g/km, whereas under WTLP the CO2 emissions are 101g/km - jumping two bands higher.

[duncerduncs]

It's a nice little tax fiddle for the Government!  Raise the CO2 of the cars by changing the test procedure, but keep all the bands the same!

The RAV4 sees a £60 rise in it's first year VED and moves up 6 bands on the company tax....

[FROSTYBALLS]

16 minutes ago, duncerduncs said:

The RAV4 sees a £60 rise in it's first year VED and moves up 6 bands on the company tax...

Yes, its thought the Treasury's coffers will benefit to the tune of around £200 million .......

[duncerduncs]

1 hour ago, FROSTYBALLS said:

Yes, its thought the Treasury's coffers will benefit to the tune of around £200 million .......

I'm sure every penny will be put back into the transport network...  🤥