Sure, I'll try to clarify the overall changes that may affect you. The updated VED rates that have been announced recently in the Budget apply to cars first registered on or after 1 April 2017. The new rates take effect on 1 April 2021. As before, the amount of first-year VED you’ll pay will depend on your new car’s CO2 emissions. Fully electric and hydrogen fuel cell cars will retain their road-tax (VED) exemption status, as a result of having zero tailpipe emissions. After this initial 12-month period, every petrol, diesel and hybrid-powered car will set you back £155 per year to tax – £5 more than in 2020 – while cars powered by biofuel or liquid-petroleum gas (LPG) will cost £145 per year to tax (up from £140).

Cars that cost £40k or more (after options) are subject to a further £335 annual supplement (up from £325 in the last financial year) that runs for five years. This kicks in after the first-year CO2-based charge, so you’ll pay the supplement from years two to six of the car’s life. After that, the annual road tax reverts back to the £155 a year (£145 for AFVs) charge. Fully electric cars are the only exception to this rule.