Fleet News

Small cars to benefit from road tax change

DRIVERS of small cars already on the road could benefit from reforms in Vehicle Excise Duty as the reduced rate of VED that currently applies to cars with engine sizes up to 1,100cc will be extended to engines up to and including 1,200cc from March 1.

Drivers of 1,200cc cars renewing their VED from March 1 will pay the reduced rate of £105 for 12 months and £57.75 for six months. And the tax will be backdated so drivers who took out their VED between March 1, 2000 and February 23, 2001 will be entitled to a rebate. The rebate will be £27.50 for a six-month licence and £55 for a 12-month licence or £82.50 for a combination of a six-month and a 12-month licence.

In March the Driver and Vehicle Licensing Agency will send out rebate application forms (V925). This will tell drivers exactly how much they are entitled to. If the form is returned within 10 weeks, drivers should receive a cheque within four weeks. But drivers who took out VED in January or February 2000 will not be eligible for a rebate.

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