Part 6Other taxes

Vehicle taxes

324Rates of vehicle excise duty

(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 “£295” substitute “£325”, and

(b)

in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£180” substitute “£200”.

(3)

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

“CO2 Emissions Figure

Rate

(1)

(2)

(3)

(4)

Exceeding

Not exceeding

Reduced rate

Standard Rate

g/km

g/km

£

£

100

110

10

20

110

120

25

35

120

130

140

150

130

140

170

180

140

150

190

200

150

165

230

240

165

175

280

290

175

185

310

320

185

200

355

365

200

225

385

395

225

255

665

675

255

—

685

695”.

(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, “385” were substituted for “665” and “685”, and

(b)

in column (4), in the last two rows, “395” were substituted for “675” and “695”.”

(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 Figure

Rate

(1)

(2)

(3)

(4)

Exceeding

Not exceeding

Reduced rate

Standard Rate

g/km

g/km

£

£

0

50

0

10

50

75

20

30

75

90

120

130

90

100

155

165

100

110

175

185

110

130

200

210

130

150

245

255

150

170

635

645

170

190

1030

1040

190

225

1555

1565

225

255

2210

2220

255

—

2595

2605”.

(6)

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

“CO2 Emissions Figure

Rate

(1)

(2)

(3)

Exceeding

Not exceeding

Rate

g/km

g/km

£

0

50

30

50

75

130

75

90

165

90

100

185

100

110

210

110

130

255

130

150

645

150

170

1040

170

190

1565

190

225

2220

225

255

2605

255

—

2605”.

(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 “£155” substitute “£170”, and

(b)

in paragraph (b) (standard rate), for “£165” substitute “£180”.

(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 “£510” substitute “£560”, and

(b)

in paragraph (b), for “£520” substitute “£570”.

(9)

In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£290” substitute “£320”.

(10)

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

(a)

in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£22” substitute “£24”,

(b)

in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£47” substitute “£52”,

(c)

in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£73” substitute “£80”, and

(d)

in paragraph (d) (other cases), for “£101” substitute “£111”.

(11)

The amendments made by this section have effect in relation to licences taken out on or after 1 April 2023.

325Reform of HGV road user levy

Schedule 22 makes provision (including consequential provision) about—

(a)

the charging of HGV road user levy in respect of UK-registered and non-UK registered heavy goods vehicles,

(b)

the register of HGV road user levy paid or due to be paid, and

(c)

the rate of HGV road user levy chargeable in respect of a heavy goods vehicle by reference to the vehicle’s revenue weight.

326End of exempt period for HGV road user levy

(1)

In section 88 of FA 2020 (HGV road user levy)—

(a)

in the heading, at the end insert “: exempt period”;

(b)

in subsection (1), at the beginning insert “Subject to section 88A,”;

(c)

in subsection (3), at the beginning insert “For the purposes of this section and section 88A,”.

(2)

After that section insert—

“88AHGV road user levy: transitional provision for end of exempt period

(1)

This section applies where—

(a)

a UK heavy goods vehicle (the “charged vehicle”) is charged to vehicle excise duty in respect of more than one period (a “charged period”) beginning within the last 12 months of the exempt period, and

(b)

the combined length of the charged periods is more than 12 months.

(2)

Section 5(2) of the 2013 Act applies in relation to the charged vehicle in respect of each complete month in the period (the “transitional liability period”)—

(a)

beginning with the day after the last exempt day in relation to the charged vehicle, and

(b)

ending with the end of the charged period during which that last exempt day occurs.

(3)

The last exempt day, in relation to a charged vehicle, is the last day of the period of 12 months beginning with the day on which the first charged period beginning within the last 12 months of the exempt period began.

(4)

Subsection (5) applies where, in relation to the charged vehicle—

(a)

a notification has been made under section 7(2)(c) of the 2013 Act (an “off-road notification”) in respect of a period beginning within the last 12 months of the exempt period, and

(b)

vehicle excise duty is charged in respect of a period beginning—

(i)

after the day on which the off-road notification is made, and

(ii)

within the last 12 months of the exempt period.

(5)

In calculating the period of 12 months mentioned in subsection (3) ignore the number of whole months in the period beginning with the day on which the off-road notification is made and ending with the first day of the period described in subsection (4)(b).

(6)

The Secretary of State, and any person who may exercise powers on behalf of the Secretary of State under section 9 of the 2013 Act (collection of levy), may (in addition to having the powers, duties and liabilities mentioned in that section) give a notice (a “payment notice”) to a person liable for HGV road user levy in respect of a transitional liability period.

(7)

A payment notice must state—

(a)

the amount of HGV road user levy for which the person is liable in respect of the transitional liability period,

(b)

how the amount is to be paid, and

(c)

that payment must be made within the period of 28 days beginning with the day on which the notice is given.

(8)

The amount in subsection (7)(a) is given by—

L×M12math

where—

L is the yearly rate of HGV road user levy applicable in relation to the vehicle on the first day of the transitional liability period, and

M is the number of whole months during the transitional liability period.

(9)

In relation to the transitional liability period—

(a)

a person commits an offence under section 11 of the 2013 Act (offence of using or keeping heavy goods vehicle if levy not paid) only if the person—

(i)

has been given a payment notice, and

(ii)

has failed to make payment in accordance with that notice, and

(b)

section 7(5A) of the Vehicle Excise and Registration Act 1994 has effect as if the reference to HGV road user levy having been paid were a reference to it having been paid in accordance with a payment notice.

(10)

In this section “UK heavy goods vehicle” has the same meaning as in the HGV Road User Levy Act 2013 (see section 2 of that Act).”