Budget 2012: Modest changes for VED
21 March 2012
The Government has announced a modest rise in VED in its 2012 Budget, effective from the April 2012.
Bands A to C (vehicles emitting up to 120g/km) remain unchanged for both first year and standard rate tax, while bands D to J (121-200g/km) will see a £5 annual rise in standard rate VED. Band K cars (201-225g/km) will rise by £10, while the two highest bands L and M (226g/km and beyond) will see a £15 rise.
Larger increases are in line for the first year tax rate, specifically for the most polluting cars and LCVs. Vehicles in bands E to G (131-165g/km) will see a £5 increase, H and I (166-185) a £10 increase, J (186-200) a £15 increase, K (201-225) a £20 increase, L (226-255) a £25 increase and M (over 255) a £30 increase.
Vehicles registered before March 2001 will continue to be taxed based on engine size and are subject to a £5 increase. Those with engines of 1549cc or less will pay £135 and those over 1549cc will pay £220.
Follow BusinessCar on Twitter.