Van tax to be cut for green vehicles

Chancellor announces a consultation into cutting tax on vans with low emissions

Murray Scullion
Mar 13, 2018

Van tax will be cut for the greenest vehicles under government plans announced in the Treasury's Spring Statement.

Philip Hammond, Chancellor of the Exchequer has promised to ‘help the great British white van driver go green’ by reducing tax on the "cleanest vans".

Van drivers currently pay between £140 and £240 a year in road tax, which is also known as Vehicle Excise Duty (VED). It's not yet known how much the tax cut will be worth, and which vehicles will be affected.

The proposals will be set out in a Treasury consultation document to be published later this year, when industry figures and members of the public will be able to respond. Once the consultation period is over, the government would be expected to intriduce the tax cut.

According to sister website, Auto Express, Hammond said: "This Government is determined that our generation should leave the natural environment in a better state than we found it, and improve the air we breathe.

"We will help the great British white van driver go green with a consultation into a reduced VED rate for the cleanest vans."


This news comes days before changes in how diesel cars are taxed. Taxes for many diesel drivers will go up next month, as the Chancellor introduces higher charges for company car users and new car buyers with diesel vehicles. Almost 3 million drivers will be affected by the measures, which are expected to raise £195 million for the Treasury.

Most new diesel cars will be charged as if they were in the next tax band. It will add between £15 and £520 to the cost of taxing a brand new diesel car for the first time. Some versions of popular family cars, such as the Ford Kuga, Land Rover Discovery Sport and Volkswagen Tiguan, will cost £315 more to tax than an equivalent petrol car. Vans are not affected by this increase.

Read more about:

Latest news

  1. Best pre-registered car deals

  2. Best-Selling Cars

  3. Eight things you didn't know about the Mercedes-AMG 4-door Coupe

What our customers say