Vehicle Excise and Registration Act 1994 section 1J

Annual rate of vehicle excise duty for light goods vehicles

Section 1J sets the annual rates of vehicle excise duty (road tax) for light goods vehicles covered by this part of the schedule, distinguishing between standard vans and those qualifying as lower-emission or electric vans.

• Light goods vehicles that do not qualify as lower-emission or pre-2011 electric vans pay an annual vehicle excise duty rate of £345.
• Vehicles qualifying as pre-2007 or post-2008 lower-emission vans, or pre-2011 electric vans, benefit from a reduced annual rate of £140.
• The reduced rate recognises vans with lower emissions or electric power, encouraging the use of cleaner commercial vehicles.
• These rates have been amended several times, most recently by Finance Act 2025, and apply to vehicles falling within this part of Schedule 1 to the Act.