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New vans to face lower vehicle taxes under Treasury proposals

Auto Express logo Auto Express 13/03/2018 Martin Saarinen
New vans to face lower vehicle taxes under Treasury proposals © Auto Express New vans to face lower vehicle taxes under Treasury proposals

Van drivers and businesses purchasing a new low-emissions commercial vehicle in the future may face lower vehicle tax rates, the Treasury has said. 

In his spring statement, Chancellor Philip Hammond said the Treasury will launch a consultation into reduced Vehicle Excise Duty (VED) rates for the "cleanest vans".

Hammond said: “This Government is determined that our generation should leave the natural environment in a better state than we found it, and improve the air we breathe.

Related: Everything you need to know about the 2017 car tax rules (Press Association)


“Following our successful intervention to incentivise clean taxis, we will help the great British white van driver go green with a consultation into reduced VED rates into the cleanest vans.”

The news comes just days before new diesel cars will be hit with higher taxes. New diesel cars that fail to meet the latest Euro 6 emissions standards under real-world testing will move up a tax band from 1 April 2018 onward. Announced in the 2017 Autumn budget, new diesel cars have to meet the Real Driving Emissions limits for nitrogen oxide to stay within their current tax bands.  

© Lewis Whyld

The Treasury previously said the new taxes will impact two million new cars, but said new diesel vans were exempt from the tax hikes in order to protect the white van driver. 

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Related: Losers in the April 2018 road tax hike (Read Cars)

Losers in the April 2018 road tax hike: In 2017 the Government announced that all diesel cars which don’t meet tough new “real-world” driving emissions standards will face higher road tax from April 2018.Even though the new tests do not come into force until 2020 and manufacturers do not have time to make immediate changes, all NEW diesel cars will, in effect, go up a road tax band from April 1, 2018.Assuming the first-year increase (between £20-£500) is absorbed by dealers and leasing companies, it won’t mean that buyers are out of pocket. Also, tax for subsequent years remains at £140 for all new diesels under £40,000.Here are some examples of how the change is expected to affect new diesel cars after April, assuming these cars do not meet the new RDE 2 real world emissions standards…. Losers in the April 2018 road tax hike


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