Finance Act 2021

104Rates for light passenger or light goods vehicles, motorcycles etcU.K.

(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 “£270” substitute “ £280 ”, and

(b)in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£165” substitute “ £170 ”.

(3)In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute—

CO2 emissions figureRate
(1)(2)(3)(4)
ExceedingNot exceedingReduced rateStandard rate
g/kmg/km££
1001101020
1101202030
120130120130
130140145155
140150160170
150165200210
165175240250
175185265275
185200305315
200225330340
225255575585
255590600.

(4)In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute—

(a)in column (3), in the last two rows, “330” were substituted for “575” and “ 590 ”, and

(b)in column (4), in the last two rows, “340” were substituted for “585” and “ 600 ”.

(5)In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute—

CO2 emissions figureRate
(1)(2)(3)(4)
ExceedingNot exceedingReduced rateStandard rate
g/kmg/km££
050010
50751525
7590105115
90100130140
100110150160
110130170180
130150210220
150170545555
170190885895
19022513351345
22525519001910
25522352245

(6)In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—

CO2 emissions figureRate
(1)(2)(3)
ExceedingNot exceedingRate
g/kmg/km£
05025
5075115
7590140
90100160
100110180
110130220
130150555
150170895
1701901345
1902251910
2252552245
2552245.

(7)In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)—

(a)in paragraph (a) (reduced rate), for “£140” substitute “ £145 ”, and

(b)in paragraph (b) (standard rate), for “£150” substitute “ £155 ”.

(8)In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—

(a)in paragraph (a), for “£465” substitute “ £480 ”, and

(b)in paragraph (b), for “£475” substitute “ £490 ”.

(9)In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£265” substitute “ £275 ”.

(10)In paragraph 2(1) (rates for motorcycles)—

(a)in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£20” substitute “ £21 ”,

(b)in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£44” substitute “ £45 ”,

(c)in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£67” substitute “ £69 ”, and

(d)in paragraph (d) (other cases), for “£93” substitute “ £96 ”.

(11)The amendments made by this section have effect in relation to licences taken out on or after 1 April 2021.