Vehicle excise duty

The measure

Vehicle excise duty (VED) rates for cars, vans and motorcycles will increase in line with RPI. To support the haulage sector, the government will freeze the heavy goods vehicle (HGV) VED for 2019/20.

The government will shortly publish a summary of responses from the consultation on VED reform for vans, published in May 2018. The response will set out proposals to introduce environmental incentives from April 2021. 

Who will be affected?

Owners and operators of HGVs or vehicles that fall under the VED scheme.

When will the measure come into effect?

VED rate changes will be effective from 1 April 2019.

Bands and rates in relation to the VED reform for vans will be set out ahead of the 2019 Finance Bill.