Vehicle tax is increasing in April 2022, but how much will the cost of your vehicle tax be increasing?
Back in October Chancellor Rishi Sunak unveiled his Autumn Budget plans in an address to the House of Commons, including an increase on Vehicle Excise Duty (vehicle tax).
The amount your car tax is rising depends on the emissions your vehicle produces- the more emissions your car produces the more you will pay.
VED is made up of two payments – the standard rate and the first-year rate which is also known as ‘showroom tax’. Showroom tax is based on the CO2 figure when the vehicle was built.
The standard rate is the annual renewal you pay yearly from there onwards.
Cars with a list price of over £40,000 when new pay an additional rate of £355 a year on top of the standard rate for five years.
VED for vehicles registered on or after March 1st 2001
VED for vehicles registered on or after April 1st 2017
