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Written question asked by Baroness Pidgeon (Liberal Democrat) on Monday, 20 April 2026, in the House of Lords. It was due for an answer on Tuesday, 5 May 2026. It was answered by Lord Livermore (Labour) on Tuesday, 28 April 2026 on behalf of the Treasury.

Motor Vehicles: Excise Duties

Question

To ask His Majesty's Government what plans they have to review how vehicle excise duty is calculated for all road vehicles, including motorcycles, to remove any inconsistencies in the system.

Answer

Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions. As of April last year, zero emission and hybrid cars, vans and motorcycles now pay VED in a similar way to petrol and diesel vehicles.

There are no current plans to review how VED is calculated for all road vehicles. The Government regularly reviews the rates and thresholds of taxes and reliefs at fiscal events to ensure that they are appropriate and reflect the current state of the economy.

Secondary information

Type
Written question
Reference
HL16575
Session
2024-26
Subjects
Excise duties Motor vehicles Reviews
Link
View this Written question on www.parliament.uk