Increase in VED Charges07 April 2021
The Government has introduced new rates of vehicle excise duty (VED) – more commonly known as car or road tax.
Launched on 1st April 2017, the amount that motorists have to pay varies based on the level of emissions their car emits, every year since the cost of this has increased and 2021 is no different.
Hybrid vehicles receive a £10 discount on their VED rates. Electric and hydrogen fuel cell cars will remain exempt from VED.
Additionally, as with previous years, any diesel cars which do not meet the Real Driving Emissions Step 2 standards are treated as if they are one band higher than they should be.
To see the VED figures for 2021 – see the table below:
If the vehicle costs more than £40,000 to buy, there will be an additional £335 levy which has to be paid for four years starting the year after the car was registered. However, this is not applicable for cars with zero emissions.
If you have any queries regarding this and the impact on your lease agreement, please contact one of our team here