Vehicle Excise and Registration Act 1994 schedule 1 paragraph 4E

Graduated rates of vehicle excise duty for light passenger vehicles based on CO2 emissions

Schedule 1 paragraph 4E establishes the graduated rates of vehicle excise duty (road tax) applicable to light passenger vehicles, where the rate payable depends on the vehicle's carbon dioxide emission level as certified during the type approval process.

• Light passenger vehicles first registered on or after 1 March 2001 are subject to graduated vehicle excise duty rates based on their CO2 emissions figure shown on the registration document.
• Vehicles are placed into bands according to their CO2 emissions in grams per kilometre, with lower-emission vehicles paying less duty and higher-emission vehicles paying more.
• A reduced rate applies to vehicles that meet alternative fuel criteria (such as electric, hybrid, or gas-powered vehicles), providing a financial incentive for cleaner vehicle technologies.
• The applicable CO2 emissions figure is determined by the vehicle's EC type approval certificate or, where applicable, by an equivalent UK approval process.