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.
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.
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
Audi A3 Sportback 1.5 litre
Audi A4 Saloon 2.0 litre
Audi Q2 1.4 litre
Audi TT Coupé 2.0 litre
Audi Q5 3.0 litre
Audi Q7 4.0 litre
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.
|CO2 emissions (g/km)||Standard rate ||First year rate||First year rate - diesel vehicles|