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 |