BUDGET 2008: Big penalties for higher-polluting cars amid sweeping VED changes
Date:
12 March 2008
Cars running on modern petrol have a lower list price than diesel equivalents
New cars that emit more than 255g/km will be hit by a £950 first year Vehicle Excise Duty bill from 2010 as part of large-scale changes to VED aimed at driving people towards lower-emitting cars.
At the same time, models under 131g/km will be handed a free first year's road tax, while models between 131-160g/km will be charged at the same banded levels as older vehicles with the same emissions figures.
After the first year, all new models will fall into their respective CO2-influenced VED bands.
But before that, six new VED bands will be introduced next year to make a total of 13, including a new M banding for very high polluters emitting more than 255g/km.
At the moment, the top G band covers everything over 225g/km.
Next year's reforms will also see a reduction for all new and existing cars that emit less than 151g/km, but an increase to £440 on the highest polluters, cars over 255g/km. That rises to £455 in 2010.
In an aside, alternatively fuelled cars such as hybrids and LPG models will find their discount gradually eroded to £15 in 2009/10, £10 in 2010/11 and removed completely in favour of a technology-neutral CO2-based system in 2011.
VED changes from 2008 | VED band | CO2 (g/km) | 2008/9 (£) | CO2 (g/km) | 2009/10 (£) | 2010/11 new car (£) | 2010/11 after first year (£) | A | -101 | 0 | Up to 100 | 0 | 0 | 0 | B | 101–120 | 35 | 101–110 | 20 | 0 | 20 | C | 121–150 | 120 | 111–120 | 30 | 0 | 35 | D | 151–165 | 145 | 121–130 | 90 | 0 | 95 | E | 166–185 | 170 | 131–140 | 110 | 115 | 115 | F | Over 186 | 210 | 141–150 | 120 | 125 | 125 | G | Over 226 | 400 | 151–160 | 150 | 155 | 155 | H | | | 161–170 | 175 | 250 | 180 | I | | | 171–180 | 205 | 300 | 210 | J | | | 181–200 | 260 | 425 | 270 | K | | | 201–225 | 300 | 550 | 310 | L | | | 226–255 | 415 | 750 | 430 | M | | | Over 255 | 440 | 950 | 455 |
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