Do CO2 levels only affect the first year VED?
With the VED changes of 1/4/2025, from the second to sixth year, does a £40k BMW and a £400k Rolls Royce pay the same VED ie £195+ £425? Does the CO2 value affect only the first year VED?
Asked on 8 July 2025 by docajac
Answered by
David Ross
Assuming both the BMW and Rolls Royce are petrol-engined and not alternatively fuelled, they will both pay the same rate of £195 plus the premium of £425 for the second to sixth year. However, it is important to note that the first year rate does take into account CO2 emissions, so a Phantom would have attracted the maximum rate of £5,490 in the first year. You can read our comprehensive guide to VED rates here - www.honestjohn.co.uk/car-tax/
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