Legislation – Finance Act 2025
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There are currently no known outstanding effects for the Finance Act 2025, Section 66.
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Part 3Other taxes
Taxes relating to vehicles
66Rates of vehicle excise duty for light passenger or light goods vehicles etc
(1)
Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.
(2)
In paragraph 1 (general rate)—
(a)
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£345” substitute “£360”
, and
(b)
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc etc), for “£210” substitute “£220”
.
(3)
In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), omit paragraph (b) together with the “and” before that paragraph.
(4)
“CO2 Emissions Figure
(1)
(2)
(3)
Exceeding or, in the first row, equal to or exceeding
Not exceeding
Rate
g/km
g/km
£
0
100
20
100
110
20
110
120
35
120
130
165
130
140
195
140
150
215
150
165
265
165
175
315
175
185
345
185
200
395
200
225
430
225
255
735
255
—
760”.
(5)
In the sentence immediately following the Table in that paragraph, for the words from “as if” to the end substitute “as if, in column (3), in the last two rows, “430” were substituted for “735” and “760”.”
(6)
Omit paragraphs 1C to 1F together with the italic heading before paragraph 1C (which provide for a reduced rate).
(7)
In paragraph 1GA (vehicles to which Part 1AA applies), in sub-paragraph (3), omit paragraph (c).
(8)
In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), in sub-paragraph (2), omit paragraph (b) together with the “and” before that paragraph.
(9)
“CO2 Emissions Figure
(1)
(2)
(3)
Exceeding or, in the first row, equal to
Not exceeding
Rate
g/km
g/km
£
0
0
10
0
50
110
50
75
130
75
90
270
90
100
350
100
110
390
110
130
440
130
150
540
150
170
1360
170
190
2190
190
225
3300
225
255
4680
255
—
5490”.
(10)
“CO2 Emissions Figure
Rate
(1)
(2)
(3)
Exceeding or, in the first row, equal to or exceeding
Not exceeding
Rate
g/km
g/km
£
0
50
130
50
75
270
75
90
350
90
100
390
100
110
440
110
130
540
130
150
1360
150
170
2190
170
190
3300
190
225
4680
225
255
5490
255
—
5490”.
(11)
In paragraph 1GD(1)(rates for any other licence for light passenger vehicles registered on or after 1 April 2017), for the words from “applicable to the vehicle is—” to the end substitute “applicable to the vehicle is £195.”
(12)
In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), for the words from “applicable to the vehicle is—” to the end substitute “applicable to the vehicle is £620.”
(13)
In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007, post-2008 lower emission vans or pre-2011 electric vans), for “£335” substitute “£345”
.
(14)
In paragraph 1N (which defines “pre-electric van” for the purposes of paragraph 1J), for “2003 and” insert “2003 but before 1 January 2007 or on or after 1 January 2009 but”
.
(15)
In paragraph 2(1) (rates for motorcycles)—
(a)
in paragraph (a) (engine cylinder capacity not exceeding 150cc etc), for “£25” substitute “£26”
,
(b)
in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£55” substitute “£57”
,
(c)
in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£84” substitute “£87”
, and
(d)
in paragraph (d) (other cases), for “£117” substitute “£121”
.
(16)
In consequence of the amendments made by the preceding provisions of this section, in section 10 of FA 2023, omit subsection (5)(b) and (c).
(17)
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.