Vehicle Excise Duty by Compare Contract Hire

All cars, motorcycles and light commercial vehicles are subject to a vehicle road tax (Vehicle Excise Duty or Road Fund Licence).

There are currently seven Vehicle Excise Duty Bands.

Please note that smaller bands are being introduced for cars from April 2009 following the 2008 Budget and pre Budget Report and are still based on the CO2 (g/km) output of the vehicle. There will be thirteen bands in total.

There is one Vehicle Tax rate for light goods vehicles registered on or after March 2001. For vans that meet Euro 4 emissions standard the rate is reduced.

From the 1st January 2009, vans that meet Euro 5 emission standards and are first registered between the 1st January 2009 and 31 December 2010, will also be eligible for the reduced rate of Vehicle Tax.

Vehicle Excise Duty is normally included in your contract hire arrangement, however always check this with the contract hire company.

These figures have been updated following the pre Budget report 24/11/08

There is a first year rate for new cars from 1st April 2010, with higher rates for the most polluting cars. From the second year of purchase you will then pay the standard rate.
The purpose of the first year rate is to make you think about the environmental impact of the car you are choosing.
For the least polluting cars, which emit 130g of CO2 per km or less, the first year rate is zero.
For new cars that emit greater than 131 g/km of CO2 the first year rate is graduated as below.
Small changes in CO2 will now have a bigger effect on the Vehicle Excise Duty and the contract hire company will factor this into their rental calculations.
Choosing a less polluting vehicle will help the environment and should save you money, by paying less for your contract hire rental.
Further information is available @ www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_172916

Cars - Band K below includes cars that have a CO2 figure over 225 g/km but were registered before 23 March 2006. These cars will stay in band K.

Vans

Light Goods Vehicles, 2009 -10, the VED rate will be £185 and the 2010-11 VED rate is £200.
Euro 4 & 5 emission compliant LGV's, 2009-10 & 2010-2011, the VED rate is £125 in both years.

Compare Contract hire Ltd cannot be held responsible in any way concerning the accuracy of the above information.