Vehicle Excise Duty Changes Are Coming In 2020 For ALL New Cars – And It Could Cost Brits £500 Extra

ROAD tax rates will be changed from 2020 - and it could see Brits hit with bills of up to £500 for new cars.

Vehicle excise duty (VED) is to be shaken up again to account for tough new emissions tests from 6 April 2020, according to official documents.

 Tough new standards are coming in and it could lead to tax hikes>AP:Associated Press>
Tough new standards are coming in and it could lead to tax hikes

The new regulations will make CO2 emissions more "real-world" and this will push up how much greenhouse gases cars officially pump out on paper.

Under current rules cars would jump up multiple tax bands with the biggest hike possible a £500 hit.

The Worldwide harmonised Light vehicles Test Procedure (WLTP) is being phased in to replace the heavily criticised New European Driving Cycle (NEDC) to close lab loopholes that allow manufacturers to massage results.

How the lab test will change: NEDC v WLTP


  • Duration: 20 minutes
  • Distance: 6.8 miles
  • Speeds: 21mph average/75mph maximum
  • Gears: Fixed shifting
  • Temperatures: 20C to 30C


  • Duration: 30 minutes
  • Distance: 14.4miles
  • Speeds: 28.9mph/81.3mph maximum
  • Gears: Variable shifting depending on car
  • Temperatures: 14C to 23C

From September 2018 cars will display both values and from April 2020 the NEDC results will be killed off for good.

The Department for Transport is now consulting on changes to the VED scheme to align with the stringent emissions standards.

The European Automobile Manufacturers Association admitted WLTP tests will "result in a higher g/km CO2 value for a specific vehicle compared to the NEDC, simply because it is more rigorous than the old test."

The industry group claimed consumers shouldn't be hit by a tax rise as a result - but the CO2 differences are startling.

 Current rates will be changed to account for new tests>>
Current rates will be changed to account for new tests

On average CO2 figures rise by around 20 per cent from NEDC to WLTP tests so a huge shift in VED rates is needed to avoid any increase in bills.

Small motors like the Ford Fiesta, SEAT Leon, Vauxhall Astra and many more that offer sub-100g/km ratings could jump up two bands from £120 to £160.

For more powerful cars like the Range Rover Sport, Porsche Cayenne and Toyota Land Cruiser the jump would be even more punishing.

Company car tax rates will also take a hit under the 2020 changes.

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Under current VED rates, yearly rates revert to a flat £140 regardless of emissions after the first 12 months - but this could change under 2020 proposals.

The announcement is the latest move to crack down on car emissions with HM Treasury revealing a new diesel tax from this April.

Brits buying new diesels will have to pay for the band above for the next two years until ultra-clean, tax-beating cars are on sale.

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