Car rates

New Car Tax Rates 2022: How Will the New Rates Affect Car Owners?

An increase in Excise duty on vehicles (VED), also called road tax, comes into force in the UK this spring, which could force many car owners to pay significantly more taxes. Due to rising inflation, the fees charged to vehicle owners will increase.

Here in this VED guide in 2022, we will indicate when exactly the changes will occur and by how much the fees will be increased.

What are the new UK VED tariffs for 2022?

VED rates have risen with inflation since 2010 and that will be the case again in 2022, which is announced in the fall budget.

The rates and increases depend on the car’s registration date, but the standard rate for new diesel vehicles registered after April 1, 2018 that do not meet the Actual Driving Emissions Standard 2 (RDE2) will be reduced from 155 to 165.

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

  • 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 over 40,000 will pay an additional annual rate of 355 on top of the standard rate for five years. Alternative fuel vehicles will pay 155 per year.

When will the new UK VED rates go into effect?

The changes will coincide with the new tax year, which means they will begin on April 1, 2022.

Already, however, the increases have been agreed to with prior warning.