Part 5: Excise Duties and other taxes Section 46: Vehicle excise duty Details of the section and Schedule Schedule 1: Part 1AA: Light Passenger Vehicles Registered On or After 1 April 2017
Subsection (1) amends Part 1A of Schedule 1 to VERA 1994 to introduce Part 1AA which applies to light passenger vehicles first registered on or after 1 April 2017.
	Subsection (2) amends paragraph 1A concerning to which vehicles to which Part 1A applies.
	Paragraph 1GA (1)-(3) of Part 1AA defines the vehicles to which this part applies.
	Paragraph 1GB (1)-(3) of Part 1AA provides an exemption from payment of VED on the first vehicle license in specified circumstances for post-March 2017 registered light passenger vehicles.
	Paragraph 1GC of Part 1AA sets out a table providing the annual rates payable on a first vehicle license. The table provides for graduated standard and reduced annual rates of VED which are determined by the vehicle's carbon dioxide emissions figure. A reduced rate of VED applies where a vehicle uses certain alternative fuels or meets other conditions set out in VERA.
	Paragraph 1GD (1), (2,) of Part 1AA sets out the rates of duty payable on any other vehicle licence as £130 if the vehicle qualifies for the reduced rate, or £140 for the standard rate but this is subject to other section provisions.
	Paragraph 1GE (1)-(4) of Part 1AA sets out the higher rates of duty to be paid for licences acquired subsequent to the first licence, in respect of light passenger vehicles with a price exceeding £40,000 and registered on or after 1st April 2017. This paragraph provides for a higher annual standard rate of £450 if the vehicle was first registered less than six years before the date of the licence. If the vehicle qualifies for the reduced rate this is £440. Subparagraphs 3 and 4 set out the rate of duty paid for subsequent licences by vehicles with a price in excess of £40,000 that also have carbon dioxide emissions figure of 0 grams per kilometre. The rate of duty for these zero emission vehicles is £310 if the vehicle was first registered less than six years before the date of the licence and it is not a first vehicle licence.
	Paragraph 1GF (1)-(4) of Part 1AA defines "price of a vehicle" for the purposes of this section.