Car tax increases – how VED is changing in 2019

Car tax increases – how VED is changing in 2019
Car tax increases – how VED is changing in 2019

They say only two things in life are certain – death and taxes – and car owners are set to feel more of the latter this year as car tax charges rise.

The last two years have seen major changes to vehicle excise duty (VED) – to give car tax its proper name.

2017 saw a complete overhaul of the system. A flat rate of £140 was introduced for cars emitting any CO2 – with a £10 discount for hybrids – and a £0 rate was placed on zero-emissions cars. At the same time a new sliding scale first-year charge was introduced, with the most polluting cars costing the most. A premium of £310 was also applied to all cars costing more than £40,000.

2018 saw all diesel cars that don’t meet RDE2 emissions standards moved up a band – meaning higher first-year rates.

2019 won’t see such sweeping changes but the Autumn Budget revealed that drivers are set to be hit with further increases in what they pay.

This year, the VED rate will increase in line with inflation – affected both the first-year rate on new cars and the annual tax on all vehicles.

From April 1, the annual rate for all petrol and diesel cars registered after April 1 2017 will increase from £140 to £145 although the £10 hybrid discount will remain.

The first-year rates on new cars will rise in line with the retail price index, meaning increases of up to £65 for the most polluting models. The supplement on cars with a list price of over £40,000 will also rise to £320 per year on for five years.

The below table shows the new charges for brand-new cars.

First-year VED rates from April 1, 2019

Owners of of cars taxed under the pre-2017 regime will also see their tax increase by between £5 and £15.

VED rates for cars registered on or after March 1, 2001

Car tax 2019

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