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In the Autumn 2017 Budget, Chancellor Philip Hammond has announced further cost changes for diesel cars and company car drivers.

As the pressure builds for our cleaner air for our town and city centres, and for pollution that is caused by traffic and transport to be reduced, the Chancellor has once again targeted the diesel car and driver.

Company car drivers who drive a diesel are to be hit with an increase of 1% to the Benefit in Kind Diesel Supplement that they already pay over petrol drivers, from 3% to 4%.

Vehicle Excise Duty for new diesel cars that do not meet the latest industry standards (EURO 6) in both laboratory and real world testing conditions will see an increase of one band from April 2018. This means that only the very cleanest diesels avoid penalty, encouraging buyers to consider whether diesel is the right fuel for their circumstances, as well as encouraging manufacturers to meet and improve the standards.

The impact for a new buyer as of  April 2018 is as below.

CO2 emissions (g/km)

Current first year VED rates

First year VED rates for diesels bought from April 2018 not meeting real world Euro 6 standards 

0

£0

N/A

1-50

£10

£25

51 - 75

£25

£100

76 - 90

£100

£120

91 - 100

£120

£140

101 - 110

£140

£160

111 - 130

£160

£200

131 - 150

£200

£500

151 - 170

£500

£800

171 - 190

£800

£1,200

191 - 225

£1,200

£1,700

226 - 255

£1,700

£2,000

Over 255

£2,000

TBC

If you run a company car due for a change and want to know more about the suitable alternative options available to you, or are looking for a stress free way to buy your new car, then we can help you!

Get in touch with us on 0330 1200 545 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it.

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  0330 1200 545

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