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UK Road Tax (VED) Increase: What You Need To Know

You may already be aware that UK road tax is set to increase in the coming weeks. The amount of road tax you pay is based on your vehicle’s CO2 emissions, and this will still be the case; however, planned changes to the system have led the government to predict that most cars will see a 20% increase in CO2 ratings, and therefore sit in a higher tax band.

Here is everything you need to know about the upcoming 2020 road tax increase.


How is road tax changing?

Road tax will soon be based on a new measuring process that determines a vehicle’s official fuel consumption, range and level of CO2 emissions. This new process is termed the Worldwide Harmonised Light Vehicles Test Procedure (WLTP).


Why is the measuring process for road tax changing?

The current procedure to test CO2 emissions and mpg, known as New European Driving Cycle (NEDC), was developed in the 1990s so is now rather outdated. WLTP has been brought about to offer a better reflection on real driving conditions and to give a more realistic view of a vehicle’s emissions and fuel economy.


How will it affect my road tax?

This increase will only affect the initial purchase price of a brand new car. The WLTP test is more stringent that its predecessor and offers more accurate results. As a result, this could mean that you face an increase in road tax when you buy a new car.


Are the road tax bands changing?

No, the tax bands will remain the same. As the new measuring process is more accurate, it is likely that vehicles that would have sat in a lower band following the NEDC test will now sit in a higher one due to the new WLTP test


When will this change take place?

The change will come into play on 1st April 2020.


Can I avoid the road tax increase?

Yes, it is possible to avoid the increased charges. If you’re currently considering buying a new car, we strongly recommend that you do so before March 31st as you could save a significant sum of money.


Take a look at our new car offers and browse the vehicles we have available. If you’re interested in any of our offers, contact us today and ensure you avoid the road tax increase.

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If you have any other questions surrounding UK road tax, check out our FAQ page.