Part 5: Excise Duties and other taxes Section 46: Vehicle excise duty Summary
This section introduces new annual vehicle excise duty ("VED") rates for light passenger vehicles by amending the Vehicle Excise and Registration Act 1994 ("VERA"). The new rates only apply to light passenger vehicles ("LPVs") first registered on or after 1 April 2017 (post-March 2017 registered LPVs). It leaves in place existing graduated rates of duty for LPVs registered on or after 1 March 2001 but before 1 April 2017.
	For post-March 2017 registered LPVs in their first vehicle licence, the standard annual rates are graduated and are determined by reference to the applicable carbon dioxide emissions figures for the vehicle concerned. There are reduced annual rates for vehicles which meet the conditions set out in paragraph 1C of Part 1A of Schedule 1 to VERA ("the reduced rate conditions"). No VED is to be paid on the first vehicle licence for LPVs which have zero carbon dioxide emissions, have carbon dioxide emissions exceeding 0g/km but do not exceed 50g/km and meet the reduced rate conditions.
	For post-March 2017 LPVs with a price not exceeding £40 000, there is a flat annual rate of £140 (or £130 where the vehicle qualifies for a reduced rate) for any vehicle licence subsequent to the first licence. No VED is charged for LPVs with a price not exceeding £40 000 and have an applicable carbon dioxide emissions figure of 0g/km.
	For post March 2017 registered LPVs with a list price above £40,000, the applicable annual VED is increased by £310 per year for licences acquired during for the first five years after the first vehicle licence. These LPVs will incur the higher annual standard rate of £450 or a reduced annual rate of £440, and if the applicable carbon dioxide emissions figure is 0 g/km the annual rate will be £310.