Vehicle Excise Duty

The measure

The government has made several announcements concerned with vehicle excise duty (VED): 

  • VED rates for cars, vans and motorcycles will be increased in line with RPI from 1 April 2020;
  • HGV VED and the HGV Road User Levy for 2020/21 will be frozen;
  • All zero emissions vehicles registered until 31 March 2025 will be exempt from the VED ‘expensive car’ supplement.
  • A reduction in the annual VED liabilities for most new motorhomes will be implemented. 


Who will be affected?

Any individual who owns a vehicle in the categories listed above.  


When will the measure come into effect?

VED rates for cars, vans and motorcycles will increase from 1 April 2020. Zero emission vehicles are exempt from the ‘expensive car’ supplement from 1 April 2020.

The reduced rate of £265 for most new motorhomes will apply from 12 March 2020, with an increase to £270 applying for 2020/21. From 1 April 2021, the government will align the VED treatment of new motorhomes and vans  

Our view

The changes continue the trend from previous Budgets.