Car tax changes 2018: what you need to know.

From 1 April 2018 the first-year VED tax rate for new diesel cars will go up by one band. The standard rate after the first-year will remain the standard rate, currently £140.

The change explained

Every new car will fall into a tax band dependant on its CO2 emissions and each band has a first-year rate which was overhauled last year, from 1st April 2017.

Now, from 1st April 2018, the government has introduced a new tier for diesel vehicles that do not meet the latest Euro 6 emissions standards. At present no new diesels conform to the RDE standards, so the extra fee will apply to all new diesels sold.

Read about the 2017 VED Tax changes >

What does this mean for you?

A diesel vehicle will cost more to tax in the first year than a petrol, however the difference for a vehicle in the lower bands is minimal in the overall cost of purchasing a new car. See below the difference in cost between petrol and diesel in the Audi range:


Audi A1 Sportback 1.2 litre

  • Band A / 91-100 g/km
  • Petrol £125
  • Diesel £145
  • Difference in first-year VED = £20

Audi A3 Sportback 1.5 litre

  • Band B / 101-110 g/km
  • Petrol £145
  • Diesel £165
  • Difference in first-year VED = £20

Audi A4 Saloon 2.0 litre

  • Band C-D / 111-130 g/km
  • Petrol £165
  • Diesel £205
  • Difference in first-year VED = £40



Audi Q2 1.4 litre

  • Band C-D / 111-130 g/km
  • Petrol £165
  • Diesel £205
  • Difference in first-year VED = £40

Audi TT Coupé 2.0 litre

  • Band E-F / 131-150 g/km
  • Petrol £205
  • Diesel £515
  • Difference in first-year VED = £310

Audi Q5 3.0 litre

  • Band G-H / 151-170 g/km
  • Petrol £515
  • Diesel £830
  • Difference in first-year VED = £315



Audi Q7 4.0 litre

  • Band H-J / 171-190 g/km
  • Petrol £830
  • Diesel £1,240
  • Difference in first-year VED = £410

Electric vehicles

From April 2017, only zero-emission vehicles, such as electric cars, now qualify for the lowest band and are therefore tax-free. From the second year onwards, zero-emission vehicles that cost less than £40,000 new remain free to tax. The A3 Sportback e-tron and Q7 e-tron PHEV vehicles falls in the 1-50 g/km band, with a first-year cost increase of £15 for diesel and a standard rate of £140 for proceeding years.

Here are the next VED tax rates from April 2018:

CO2 emissions (g/km)
Standard rate
First year rate
First year rate - diesel vehicles
0 £0 £0 £0
1-50 £140 £10 £25
51-75 £140£25 £105
76-90 £140£105 £125
91-100 £140£125 £145
101-110 £140£145£165
111-130 £140£165£205
131-150 £140£205£515
151-170 £140£515 £830
171-190 £140£830 £1240
191-225 £140£1240£1760
226-255 £140£1760£2070
Over 255
£140£2070£2070