Vehicle Excise Duty – Effective 1 April 2018

A significant change to current Vehicle Excise Duty (Road Tax) rates took effect on April 1 2018. The changes mean a different method of taxing vehicles on British roads. However, the new VED rates will only apply to passenger cars registered from 1 April 2018 and any vehicles registered before this date will continue to be taxed under the previous regime.

In the first year, VED will continue to be calculated on the vehicles CO2 emissions, therefore £0 VED (Road Tax) will only apply to vehicles with zero CO2 emissions such as the Renault ZOE or KANGOO Z.E. For this first year, the CO2 emissions will continue to be split into 13 bands, but the breakpoints between bands have been amended – please see below for details.

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

The new rates and bands for the VED system effective 1 April 2018 are detailed in the tables below.

VED Bands for cars registered prior to 1 April 2018
VED Band CO2 emissions (g/km) 2017/18 First year rate 2017/18 Standard rate
A 0 £0 £0
B 1-50 £10 £140
C 51-75 £25 £140
D 76-90 £100 £140
E 91-100 £120 £140
F 101-110 £140 £140
G 111-130 £160 £140
H 131-150 £200 £140
I 151-170 £500 £140
J 171-190 £800 £140
K 191-200 £1,200 £140
L 226-255 £1,700 £140
M Over 255 £2,000 £140
VED Bands from 1 April 2018
VED Band CO2 emissions (g/km) 2018/19 First year rate - Non Diesel 2017/18 First year rate - Diesel 2018/2019 Standard rate
A 0 £0 £0 £0
B 1-50 £10 £25 £140
C 51-75 £25 £105 £140
D 76-90 £105 £125 £140
E 91-100 £125 £145 £140
F 101-110 £145 £165 £140
G 111-130 £165 £205 £140
H 131-150 £205 £515 £140
I 151-170 £515 £830 £140
J 171-190 £830 £1,240 £140
K 191-200 £1,240 £1,760 £140
L 226-255 £1,760 £2,070 £140
M Over 255 £2,070 £2,070 £140

Official fuel consumption figures are produced for comparison purposes and are measured according to the European Regulation 692/2008 and may not reflect real life driving results. These figures are specific for a vehicle type and not for a single car. Real world fuel (actual) consumption can vary as the fuel efficiency of a vehicle is influenced by driving behaviour, weather and road conditions. The use of technical equipment for example air conditioning, can also effect the fuel consumption. For further information, please visit the Vehicle Certification Agency web site www.vca.gov.uk.

Figures are obtained for comparative purposes in accordance with EU Legislation and may not reflect real life driving results. For further information, please visit the Vehicle Certification Agency web site www.vca.gov.uk.

Renault UK Limited does not offer tax advice and recommends that all Company Car Drivers consult their own accountants with regards to their particular tax position