VED Road Tax Changes 2019
1st April 2019
Vehicle Excise Duty (VED) is set to rise from today (1st April 2019), as the government plan to use the additional funds to pay for any road repairs and upgrades in the future.
The majority of motorists can expect to pay an extra £5 a year as the standard annual rates increase for petrol, diesel and alternative fuel vehicles, while drivers of older, less eco-friendly cars are looking at an extra £15 a year.
New car buyers are also being affected by the increases, with some facing an additional £65 charge on their first year if they have high CO2 emissions over 255g/km, with diesel vehicles that don’t meet the RDE2 emissions standard facing higher rates too. The new current rates have been published by the government here: https://www.gov.uk/vehicle-tax-rate-tables
Fuel type and CO2 emissions can have a big impact on a vehicle’s tax rate, which is all part of the government’s initiative to slowly transition motorists from driving petrol and diesel to electric. With no exhaust emissions, electric cars remain the best for value in terms of VED, as they remain exempt.
Vehicles that were registered as new vehicles from April 2017 that had an original list price of over £40,000 are also subject to an additional annual tax rate, which applies for five years from the second time the vehicle was taxed.
This tax stays with the vehicle so if the vehicle is sold on as a used car, any subsequent owners must also pay this on top of the standard annual rate until the five years are up. This additional rate is increasing from £310 to £320 per year, and if it applies, it will be noted on the vehicle’s logbook (V5C registration document).
Vehicle tax bands and rates are accommodated within our dealer management system, and the new rates have already been updated to reflect the changes within the DragonDMS.
Dragon2000 have been helping dealers and garages drive their businesses forward since 1995. Talk to our team today on 01327 222 333 or email firstname.lastname@example.org to find out how our dealer management system, car dealer websites and mobile apps can help your business increase profits and reduce costs.