Part 5: Excise Duties and other taxes Section 46: Vehicle excise duty Background note
The changes made by this section to the first year licence rates are intended to incentivise manufactures to produce and motorist to purchase greener LPVs. The new flat annual rate for subsequent licences with a higher rate for a limited period in relation to certain LPVs, is intended to provide a fair system of VED for motorists whilst sustaining VED revenue in the long term.