Company Car Today Toolbox

VED tables

1 April 2017 saw significant changes to the calculation of Vehicle Excise Duty (Road Fund License or Road Tax) rates. These changes will only apply to passenger cars registered from 1 April 2017. Vehicles registered before this date will continue to be taxed under the current regime.

First year Vehicle Excise Duty (VED) will be continue to be calculated on the vehicles CO2 emissions. However, the £0 VED rate will only apply to vehicles with zero CO2 emissions, rather than to any vehicle with CO2 emissions below 131g/km as today. CO2 emissions will continue to be split into 13 bands, but the breakpoints between bands have been amended – see below.

Standard rate VED (payable from year 2 onwards) will no longer be based on CO2 emissions bands. Instead, a flat rate of £140 per year will apply to all vehicles, the only exception being those with zero CO2 emissions which will continue to benefit from £0 VED.

The new rates and bands for the Vehicle Excise Duty system effective 1 April 2017 are set out in the tables below:

VED Bands PRIOR to 1 April 2017

VED BandCO2 emissions (g/km)2016/17 First year rate2016/17 Standard rate
AUp to 100£0£0
B101-110£0£20
C111-120£0£30
D121-130£0£110
E131-140£130£130
F141-150£145£145
G151-165£185£185
H166-175£300£210
I176-185£355£230
J186-200£500£270
K201-225£650£295
L226-255£885£500
MOver 255£1,120£515

New VED Bands FROM 1 April 2017

VED BandCO2 emissions (g/km)2016/17 First year rate2016/17 Standard rate
A0£0£0
B1-50£10£140
C51-75£25£140
D76-90£100£140
E91-100£120£140
F101-110£140£140
G111-130£160£140
H131-150£200£140
I151-170£500£140
J171-190£800£140
K191-225£1,200£140
L226-255£1,700£140
MOver 255£2,000£140

*cars with a list price over £40,000 pay supplement of £310 per year for 5 years