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Budget 2008: New road tax rates

March 12, 2008

Chancellor Alistair Darling has announced increases to Vehicle Excise Duty D (road tax) from tomorrow.

Only owners of cars in VED bands A and B – those that emit less than 120g/km of carbon dioxide - won't pay any more in road tax.

VED for petrol and diesel cars

Band A (up to 100g/km CO2) no fee Band B (101-120g/km CO2) £35 Band C (121-150g/km CO2) £120 - £5 increase Band D (151-165g/km CO2) £145 - £5 increase Band E (166-185g/km CO2) £170 - £5 increase Band F (185g/km to 225 CO2)£210 - £5 increase Band G* (226g/km and above ) £385 - £100 increase

VED for alternatively powered cars

Band A (up to 100g/km CO2) no fee Band B (101-120g/km CO2) £15 Band C (121-150g/km CO2) £100 - £5 increase Band D (151-165g/km CO2) £125 - £5 increase Band E (166-185g/km CO2) £150 - £5 increase Band F (185g/km to 225 CO2)£195 - £5 increase Band G* (226g/km and above ) £385 - £100 increase

Changes to VED rates will take effect from 13 March 2008. VED rates for all cars registered before 2001 will rise by £5.

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