THE Chancellor’s Budget on Monday, October 29, 2018, announced that Vehicle Excise Duty will be based on WLTP (Worldwide harmonised Light vehicles emissions Test Procedure) emission figures from April 06, 2020.
This will be for all new cars registered.
Cars first registered prior to April 01, 2020 will maintain their current VED treatment based on the current New European Driving Cycle (NEDC) test procedure.
Meanwhile, VED will increase in line with the Retail Prices Index with effect from April 01, 2019.
However, the Government did recognise that WLTP may have an impact on VED paid and said it would review the impact of WLTP on VED.
Claire Evans, Head of Fleet Consultancy at leasing firm Zenith said:
“It was a budget designed to promote growth and stability in a turbulent time ahead of Brexit next year. For the fleet industry, although there is continued short-term uncertainty, it is to be welcomed that there is recognition by Government of the impact that WLTP is having on company car costs.
“We look forward to the promised review in Spring 2019 and expect it will deliver the correct level of adjustments to current rates of VED and company car tax, and clarity on rates beyond 2021.”