Autumn Budget 2017: Key points at a glance
The Chancellor of the Exchequer, Philip Hammond, has announced the 2017 Autumn Budget. Discover how the changes to VED and electric vehicles will affect you.
Vehicle Excise Duty (Road Tax)
From April 2018 the first year VED rate for diesel cars that don’t meet the latest standards, will go up by one band. For the average diesel on sale this means an increase of around £40 - pushing it up from £160 to £200. The changes will not affect vans.
Electric cars
A new £400m fund has been created for charging infrastructure, along with an extra £100m for the existing plug-in car grant. A further £40m will be plug into research into reducing the time it takes to charge a typical electric car charging.
Fuel Duty
Fuel duty remains frozen although that will be little compensation for motorists with unleaded fuel currently averaging £1.20 a litre across the UK.
Company cars
Electric cars charged at work will not incur Benefit in Kind. At this stage it isn’t clear if that is on the electricity or the car itself. And the existing diesel supplement in company car tax will increase by one per cent.
A rise in the existing Company Car Tax diesel supplement - from three to four per cent - will also come into effect from 6 April 2018. This will also apply only to diesel cars which do not meet the Real Driving Emissions standards.
These are 2018/2019 rates of Vehicle Excise Duty (also known as car tax or road tax) as announced in Autumn Budget 2017.
VED bands and rates for cars first registered on or after 1 April 2017
Cars with a list price of over £40,000 when new pay an additional rate of £310 per year on top of the standard rate, for 5 years.
*This rate applies to diesel vehicles that do not meet the real driving emissions step 2 (RDE2) standard.
VED bands and rates for cars registered on or after 1 March 2001 but before 1 April 2017
| CO2 emissions (g/km) | Standard rate (2017-2018) | Standard rate(2018-2019) |
|---|---|---|
| Up to 100 | £0 | £0 |
| 101-110 | £20 | £20 |
| 111-120 | £30 | £30 |
| 121-130 | £115 | £120 |
| 131-140 | £135 | £140 |
| 141-150 | £150 | £155 |
| 151-165 | £190 | £195 |
| 166-175 | £220 | £230 |
| 176-185 | £240 | £250 |
| 186-200 | £280 | £290 |
| 201-225 | £305 | £315 |
| 226-255 | £520 | £540 |
| Over 255 | £535 | £555 |
SEE ALSO: Top 50: Cars in tax band A
VED bands and rates for cars/vans registered before 1 March 2001
| Engine size | Tax year 2017 to 2018 | Tax year 2018 to 2019 |
|---|---|---|
| 1549cc and below | £150 | £155 |
| Above 1549cc | £245 | £255 |
SEE ALSO: Everything you need to know about Road Tax
