Significant alterations to the vehicle excise duty (VED) are on their way.
At this point, the PA news agency addresses ten crucial queries regarding the current situation.
– What is VED?
VED, commonly known as car tax, is a levy imposed on the possession of a vehicle.
- What is the cost?
The prices change based on the car's age and condition. CO2 emissions.
— Could you provide me with some instances?
A newly introduced Volkswagen Golf R petrol version comes with a first-year cost of £220, followed by annual fees of £190 for each ensuing year.
Zero emission and low-emission vehicles like electric cars are excluded from certain regulations.
– What is happening?
The exception for zero and low-emission vehicles will come to an end.
– When?
The revamp takes effect on Tuesday, April 1st.
– Why?
The policy was unveiled by the former chancellor Jeremy Hunt under the Conservative government in November 2022.
When he spoke at the time, he expressed his desire to "create a more equitable motor vehicle taxation system."
— What effect will this produce?
Electric Vehicle owners will face a VED charge of £10 during the initial year following registration, followed by an annual fee of £195 for each consecutive year thereafter.
- What is the costly car additive?
Commonly referred to as the luxury car tax, this applies to vehicles having a listed price exceeding £40,000.
This requires payment of an additional yearly fee on top of the regular rate during years two through six following the initial registration of the vehicle.
Starting from April 1, the sum will be £425.
— What makes this a concern specifically for electric vehicles?
New EVs Those registered starting from April 1 will be responsible for the additional cost of the luxury vehicle surcharge.
– What are the worries regarding this with regard to the transition to electric vehicles?
Electric vehicles generally have higher price tags compared to their gasoline and diesel counterparts, making them more susceptible to being impacted by the additional fee for luxury cars.
Concerns arise that this might deter certain individuals from choosing electric vehicles.
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