Motor Vehicles: Excise Duties

(asked on 14th September 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the equitability of vehicle excise duty rates for zero-emission light goods vehicles used for private, non-commercial purposes; and if he will review the differential between the £360 annual VED rate for electric light goods vehicles and the £200 rate for electric cars, in cases where vehicles are built on the same zero-emission platform, such as the Nissan e-NV200 van and e-NV200 Combi passenger vehicle.


Answered by
James Murray Portrait
James Murray
Financial Secretary to the Treasury and Paymaster General
This question was answered on 14th October 2026

Vans registered after 1 March 2001 are liable to pay the standard vehicle excise duty (VED) rate for light goods vehicles, which is currently £360 per year, including vans which are Euro emission standard 6. The VED regime for vans does not distinguish between commercial and private use.

Cars pay VED according to a range of factors, such as its date of first registration or CO2 emissions.

The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events.

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