Section 17 — Finance Act 2008: Rates of vehicle excise duty

Rates of vehicle excise duty 17 1 Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.

2 In paragraph 1 (general)—

a in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£180” substitute “ £185 ” , and b in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£115” substitute “ £120 ” .

3 In paragraph 1B (graduated rates for light passenger vehicles), for the table substitute— Table CO 2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 100 120 15 35 120 150 100 120 150 165 125 45 165 185 150 170 185 225 195 210 225 385 400 The table has effect in relation to vehicles first registered before 23 March 2006 as if—

a in column (3), in the last row, “ 195 ” were substituted for “385”, and b in column (4), in the last row, “ 210 ” were substituted for “400”.

4 In paragraph 1J (light goods vehicles)—

a in sub-paragraph (a) (vehicle which is not lower-emission van), for “£175” substitute “ £180 ” , and b in sub-paragraph (b) (lower-emission van), for “£115” substitute “ £120 ” .

5 In paragraph 2(1) (motorcycles)—

a in paragraph (b) (motorbicycle and engine's cylinder capacity more than 150cc but not more than 400cc), for “£32” substitute “ £33 ” , b in paragraph (c) (motorbicycle and engine's cylinder capacity more than 400cc but not more than 600cc), for “£47” substitute “ £48 ” , and c in paragraph (d) (any other case), for “£64” substitute “ £66 ” .

6 The amendments made by this section have effect in relation to licences taken out on or after 13 March 2008.