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From 1 April 2018, the first year Vehicle Excise Duty (VED) rate for NEW diesel cars will be increased by one band. Despite a number of headlines in the media stating that there will be a £500 increase in tax for diesel vehicles, the majority of consumers are likely to face an increase of either £20 or £40. £500 is the maximum possible increase and it is true that a significant proportion of consumers might see an increase of £300.
Many popular models will face a small rise. For instance, a VW Golf 1.6 will incur an increase of £20 plus inflation, while a Nissan Qashqai 1.6l diesel will face an increment of £40.
The change will have no impact on second VED payments onwards for diesel cars. Second VED payments onwards for diesel car will stay the same as petrol cars.
NFDA will continue to urge consumers to talk to their local franchised dealer to find out how the change will affect them and ensure they purchase the car that best suits their needs.
Please see the table below to understand the effect of the changes.
|CO2 emission bands (g/km)||First year VED BEFORE April||First year VED AFTER April diesel||First year VED AFTER April petrol|
|51 – 75||£25||£105||£25|
|76 – 90||£100||£125||£105|
|91 – 100||£120||£145||£125|
|101 – 110||£140||£165||£145|
|111 – 130||£160||£205||£165|
|131 – 150||£200||£515||£205|
|151 – 170||£500||£830||£515|
|171 – 190||£800||£1,240||£830|
|191 – 225||£1,200||£1,760||£1,240|
|226 – 255||£1,700||£2,070||£1,760|