New van buyers face £15.5m VED bill
New van buyers will spend an average of £1,732 extra on Vehicle Excise Duty (VED) from April, according to a new study.
If 2024 van sales patterns continue, this will add an extra £15.5m over the first six months of the new tax year.
The increase is a result of the chancellor announcing an increase in VED first-year rates based on CO2 emissions in last year’s Autumn Budget and has been calculated by comparison site Go.Compare van insurance.
The study found that buying new diesel vans will result in the heaviest hit, with average increases estimated at £1,807 per vehicle, or £14.2 million in total. An additional £1.2m – £1,354 per vehicle – will be added to the bill of new petrol van purchases.
Hybrid van buyers will pay an additional £252 in tax, with electric van buyers paying just £10 more.
Tom Banks, motoring expert at Go.Compare, said:
“The increased VED rates will result in a big hit if you buy a brand-new van later this year, but there are things you can do to absorb the blow. The tax rates are based on CO2 emissions, so if you’re able to, this is a good time to switch to a van using cleaner fuels in the cheaper tax bands.
“If you can’t buy a suitable hybrid or electric van, you could go for a ‘nearly new’ one instead. This lets you enjoy a vehicle that’s pretty much as good as new without breaking the bank, and means you can dodge the increased tax.”
