The Chancellor of the Exchequer the Rt Hon Rishi Sunak MP has announced changes to vehicle excise duty (VED) in his Budget statement.

The following measure will take effect from 12 March 2020:

  • Motorhomes (type approved as M1SA) first registered on or after 12 March 2020, will attract the following VED rate:
  • o Private/Light Goods (PLG), or
  • o Private Heavy Goods Vehicle (PHGV) for motorhomes weighing over 3500kgs

The following measures will take effect from 1 April 2020:

  • An increase in VED rates for cars, vans and motorcycles in line with the retail prices index (RPI).
  • A freeze on the Heavy Goods Vehicle (HGV) VED rates.
  • An exemption from the expensive car supplement for zero emission vehicles.
  • The calculation of VED based on Worldwide harmonised Light vehicles Test Procedures (WLTP) CO2 emissions.
  • A VED exemption for Medical Courier Charity Vehicles, (commonly known as Blood Bikes).

The Government also published a call for evidence which includes how VED can be used to support the take-up of zero and ultra-low emission vehicles and reduce overall emissions from road vehicles.