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The Budget 2013: VED increases – and a warning

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22 March 2013

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The use of Vehicle Excise Duty not just as a revenue raising tool, but as a lever to reduce emissions continues. There was a strong hint in the Budget that this role may grow….

VEHICLE Excise Duty (VED), or road tax as most of us still call it, will increase in line with inflation from 1 April 2013.

The increases across the 13 bands range from zero for bands A-C, £5 for bands D-I, £10 for bands J and K and £15 for bands L and M. The first year rates also increase in line with inflation. The full table is shown below.

But be warned, that while this Budget’s increases were much as expected, the Budget document said that: “The Government will consider whether to reform VED over the medium term to ensure that all motorists continue to make a fair contribution to the sustainability of the public finances, and to reflect continuing improvements in vehicle fuel efficiency.”

We have been warned!

 

VED Band CO2 emissions (g/km) 2012/13
first year rate
2012/13
standard rate
2013/14
first year
rate
2013/14
standard rate
A  <100 0 0 0 0
B  101-110 0 £20 0 £20
C  111-120 0 £30 0 £30
D  121-130  0  £100 0  £105
E  131-140  £120 £120 £125 £125
F  141-150 £135 £135 £140 £140
G  151-165 £170 £170 £175 £175
H  166-175  £275 £195 £285 £200
I  176-185  £325  £215  £335 £220
J 186-200 £460 £250 £475 £260
K  201-225  £815 £460  £840 £475
L  226-255 £815 £460 £840 £475
M  Over 255 £1030  £475 £1065 £490

 

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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