Measure
The government will uprate VED rates for cars, vans, and motorcycles in line with Retail Price Index (RPI) from 1 April 2024 in the Autumn Finance Bill 2023. To support the haulage sector, VED for heavy goods vehicles (HGVs) and the HGV levy will both remain at 2023-24 rates for 2024-25.
As announced on 18 July 2023, the government will introduce legislation in Autumn Finance Bill 2023 to exempt Ukrainian nationals in the UK under the Family, Sponsor and Extension Ukrainian visa schemes from the requirement to register and tax their Ukrainian-plated and registered vehicles in the UK for a period of 36 months.
Owners and users of cars, vans, motorcycles and HGVs.
Individuals in the UK under the Family, Sponsor and Extension Ukrainian visa schemes, in possession of a vehicle with Ukrainian number plates.
The increase in VED for all vehicles other than HGVs will increase from 1 April 2024.
The 36-month VED exemption will apply from the date the individuals entered the UK. The government will legislate for this measure in Autumn Finance Bill 2023 and bring forward secondary legislation, with retrospective effect.
The measure is in line with previous VED increases and continues government support for the haulage sector.
The VED exemption for Ukrainian vehicles is welcomed support for individuals fleeing from the conflict.