New vans to lower VED rates under government proposals
The Chancellor is considering a new way of incentivising cleaner vans following the Spring Statement, with lower Vehicle Excise Duty (VED) rates being considered for the cleanest vans on the market, with new vans set to benefit!
New vans set for lower VED rates?
Chancellor, Phillip Hammond confirmed in his spring statement that the Treasury are set to launch a consultation into reduced Vehicle Excise Duty (VED) rates for the "cleanest vans" on the road. Hammond stated: "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. 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."
What are the current rates?
Currently, vans that are registered on or after March 1st 2001 cost £240 a year to tax, Euro 4 compliant vans registered between March 1st 2003 and 31st December 2006 and Euro 5 compliant vans registered between January 1st 2009 and December 31st 2010 currently have a discount available and cost £140 a year to tax. There is currently no discount available for Euro 6 compliant vans, however this may change with the new treasury proposals. You can find more information about van taxation here!
Diesel tax rise for cars
The news that new vans may face a decreased VED comes a matter of days before a tax increase for new diesel cars. New diesel cars that do not comply with Euro 6 emission standards under real-world testing will move to a higher tax band from April 1st 2018. It was announced in the 2017 autumn budget that new diesel cars need to be below the Real Driving Emissions limits for nitrogen oxide to remain in their current tax bands.
The Treasury previously stated that the new taxes would impact approximately two million new cars, however they also confirmed that new vans would be immune from the tax increases to protect the white van driver as they play a massive part in the country's economy.
New vans on finance
We'll have to wait to find out whether the proposed plans are implemented, however there's no need to wait to purchase a brand new Euro 6 18-plate van from Vansdirect! We have a HUGE range of brand new vans in stock from all of the major manufacturers with cheap van finance options including: van leasing, contract hire and hire purchase. Looking for a new van? Call us on 0800 121 6339 or enquire online and we'll get back to you asap, we also offer cars!