3. Car first registered from 1 April 2018
- The rate for the first year is based on the CO2 emissions of the vehicle.
- First year rates have increased for all cars first registered on or after 1 April 2018.
- The £40,000 rule applies to all fuel types including zero-emission cars. So, if you buy an electric car that costs more than £40,000, you’ll pay nothing in the first year, then £310 for the next five years.
- If you buy a new diesel car that doesn’t comply with RDE2 emission testing you’ll have to pay a higher amount of VED in the first year. This doesn’t apply to diesel cars first registered before 1 April 2018.
- After the first year, all petrol and diesel cars will pay an annual VED rate of £140.
The new rules are not backdated, so older cars will only need to comply with the previous tax system