From April 2024, the vehicle excise duty (VED), also known as road tax or car tax, for most new and used cars, except for the cleanest ones, will increase. This could be by as much as 6%, given the UK’s recent high inflation levels.
The increase is expected to range between £5 and £10. However, individuals who own new vehicles with the highest emissions will face a more significant rise of £140 in the first year. The initial car tax rate is determined by the amount of CO2 emissions produced by the vehicle. Starting from 1 April 2024, only fully electric vehicles will remain exempt from VED.
For petrol and diesel cars registered after 1st April 2017, there is a flat rate of £190 per year after the first year. Owners of alternative fuel vehicles, on the other hand, are required to pay £180 annually.
Vehicles priced at £40,000 or higher (including additional features) will incur an extra annual fee of £390 (increased from £355 in 2021/2022) for a duration of five years. This additional charge comes into effect after the initial year’s CO2-related fee, meaning you will be required to pay the supplement during the second to sixth year of owning the vehicle.
