What is the graduated vehicle excise duty system under Schedule 1 paragraph 4A of the Vehicle Excise and Registration Act 1994?

Schedule 1 paragraph 4A introduces graduated vehicle excise duty for cars first registered on or after 1 March 2001 in the United Kingdom. Instead of a flat rate, duty is calculated based on the car's CO₂ emissions recorded on the V5 registration document, with lower-emission vehicles paying less duty to encourage environmentally friendly vehicle purchases.

How do fuel type distinctions affect vehicle excise duty rates under paragraph 4A?

Duty rates vary according to the fuel type used by the car. Separate rate tables exist for petrol, diesel, and alternative fuel vehicles such as electric, gas, or hybrid cars. Alternative fuel vehicles generally attract the lowest rates within each CO₂ emissions band, reflecting their reduced environmental impact compared to conventional petrol and diesel vehicles.

What happens if a car registered after 1 March 2001 has no recorded CO₂ emissions figure?

Where a car's CO₂ emissions figure is not recorded, such as with certain imported vehicles, a default rate of duty applies based on engine capacity. Cars with engines of 1,549cc or below pay a lower default rate, while those exceeding that threshold pay a higher rate. This ensures all qualifying vehicles are subject to duty.

Which cars are subject to graduated vehicle excise duty under paragraph 4A?

All cars first registered on or after 1 March 2001 in the United Kingdom fall within the graduated duty regime. These vehicles are categorised by their CO₂ emission figure measured in grams per kilometre as shown on the registration document, replacing the previous flat-rate system that applied to cars registered before that date.

Vehicle Excise and Registration Act 1994 schedule 1 paragraph 4A

Graduated rates of vehicle excise duty for cars registered on or after 1 March 2001

Schedule 1 paragraph 4A establishes a system of graduated vehicle excise duty rates for cars first registered on or after 1 March 2001, based on their carbon dioxide (CO₂) emission levels and fuel type.

Cars registered from 1 March 2001 onwards are subject to graduated vehicle excise duty based on CO₂ emissions, replacing the flat-rate system for these vehicles.
Vehicles are categorised by their CO₂ emission figure (measured in grams per kilometre) as shown on the registration document, with lower-emission vehicles attracting lower duty rates.
Different rate bands apply depending on whether the vehicle uses petrol, diesel, or an alternative fuel, with alternative fuel vehicles generally benefiting from reduced rates.
Where a car's CO₂ emissions are not known or not recorded, a default rate applies based on the engine size of the vehicle.

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