2.147 Vehicle excise duty (VED) rates 2012–13 – From 1 April 2012, VED rates will increase in line with the RPI, apart from VED rates for Heavy Goods Vehicles which will be frozen in 2012–13. (Finance Bill 2012) (25)
2.148 VED reform – The Government will consider whether to reform VED over the medium term to ensure that all motorists continue to make a fair contribution to the sustainability of the public finances, and to reflect continuing improvements in vehicle fuel efficiency. In addition, the Government aims to develop a direct debit system to allow motorists to spread their VED payments. The Government will seek the views of motoring groups on these measures.
2.149 VED: tax disc display waiver – The Government will reduce tax disc postage costs by extending to fourteen days the grace period, following the payment of tax, on the non-display of a tax disc in a vehicle. (Finance Bill 2013)
2.150 VED: additional days on initial nil rate vehicle licences – The Government will reduce the administrative burdens on car leasing businesses by extending the date-to-end-month scheme to VED exempt licences. (Finance Bill 2013)
2.151 Car fuel benefit charge (FBC) 2012–13 and 2013–14 – From 6 April 2012, the FBC multiplier for cars will increase from £18,800 to £20,200, and will increase by 2 per cent above the RPI in 2013-14. The Government commits to pre-announcing the FBC multiplier one year ahead. (22)
2.152 Van FBC 2012–13 and 2013–14 – From 6 April 2012, the van FBC multiplier will be frozen at £550, and will increase by the RPI in 2013–14. The Government commits to pre-announcing the FBC multiplier one year ahead.
2.153 Company car tax rates 2014–16 – The appropriate percentage of list price subject to tax will increase by one percentage point for cars emitting more than 75 grams/kilometre of carbon dioxide, to a maximum of 35 per cent in 2014–15, and by two percentage points, to a maximum of 37 per cent in both 2015–16 and 2016–17. (Finance Bill 2012 and future Finance Bill) (20)
2.154 From April 2015, the five-year exemption for zero carbon and ultra low carbon emission vehicles will come to an end as legislated in Finance Act 2010. The appropriate percentage for zero emission and low carbon vehicles will be 13 per cent from April 2015 and will increase by two percentage points in 2016–17.
2.155 From April 2016, the Government will remove the three percentage point diesel supplement differential so that diesel cars will be subject to the same level of tax as petrol cars.
2.156 The Government will exclude certain security enhancements from being treated as accessories for the purpose of calculating the cash equivalent of the benefit on company cars made available for private use. The changes take effect retrospectively from 6 April 2011. (Finance Bill 2012)