New Car Tax Rates 2022: How will new rates affect car owners? –

New Car Tax Rates 2022: How will new rates affect car owners? –

An increase in Vehicle Excise Duty (VED), also called road tax, is coming into force in the United Kingdom this spring, which could see many car owners forced to pay considerably more tax. As a result of rising inflation, the fees charged to vehicle owners will be going up.

Here, in this guide to VED in 2022, we’ll outline when exactly the changes are coming and how much fees will be increased by.

What are the new VED rates in the UK for 2022?

VED rates have increased in line with inflation since 2010 and this will be the case again in 2022, with this announced in the autumn budget.

The rates and the increases depend on when the car was registered, but the standard rate for new diesel vehicles registered after April 1 2018 that do not meet the real driving emission step 2 (RDE2) standard will be going up from 155 to 165.

Then, the first year rates will be as follows for each band:

  • 0 CO2 emissions (g/km): 0
  • 1 to 50 CO2 emissions (g/km): 10
  • 51 to 75 CO2 emissions (g/km): 25
  • 76 to 90 CO2 emissions (g/km): 120
  • 91 to 100 CO2 emissions (g/km): 150
  • 101 to 110 CO2 emissions (g/km): 170
  • 111 to 130 CO2 emissions (g/km): 190
  • 131 to 150 CO2 emissions (g/km): 230
  • 151 to 170 CO2 emissions (g/km): 585
  • 171 to 190 CO2 emissions (g/km): 945
  • 191 to 225 CO2 emissions (g/km): 1,420
  • 226 to 255 CO2 emissions (g/km): 2,015
  • Over 255 CO2 emissions (g/km): 2,365

The UK government also explains that cars with a list price of over 40,000 will pay an additional annual rate of 355 on top of the standard rate for five years. Alternative fuelled vehicles will pay 155 per year.

When will the UK’s new VED rates come into force?

The changes will coincide with the new tax year, meaning they’ll start on April 1, 2022.

Already, though, the increases have been agreed with advance warning.


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