Vehicle Excise and Registration Act 1994 section 4EE

Paragraph 4EE of Schedule 1 – Graduated rates of duty for light passenger vehicles registered on or after 1 April 2025

Paragraph 4EE of Schedule 1 to the Vehicle Excise and Registration Act 1994 establishes the vehicle excise duty rates that apply to light passenger vehicles first registered on or after 1 April 2025, using a graduated structure based on the vehicle's CO2 emission levels and whether the vehicle is registered in its first year or in subsequent years.

• Light passenger vehicles first registered on or after 1 April 2025 are subject to graduated vehicle excise duty rates determined by their CO2 emissions, with separate first-year and standard annual rates.
• First-year rates vary significantly by emissions band, ranging from nil for zero-emission vehicles up to higher rates for the most polluting vehicles, creating a strong incentive to choose lower-emission models at the point of purchase.
• After the first year, all vehicles move to a flat standard annual rate regardless of their emissions level, simplifying ongoing duty obligations.
• Vehicles with a list price exceeding a prescribed threshold when new are subject to an additional premium rate on top of the standard rate for a period of five years from the second licence onwards, after which they revert to the standard rate alone.

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