New 'Euro 5' vehicle tax rate

As an incentive for the development and purchase of cleaner vehicles, a lower tax rate has been introduced from 1 January 2009. This concession, referred to as 'Euro 5', is for vans that run on diesel and meet the European build standard.

Lower rate of vehicle tax

Vans generally pay £180 tax per year. As from 1 January 2009, vans meeting the Euro 5 standard will pay the lower rate of tax of £125 per year and £68.75 for 6 months. (These rates are effective from 1 May 2009)  This lower rate is only available to vehicles registered between 1 January 2009 and 31 December 2010 and will remain for the lifetime of the vehicle.

This lower rate of tax will help add to the United Kingdom’s requirement to improve air quality and cut pollutant emissions, while rewarding drivers of the most environmentally friendly vehicles in their class.

More useful links

• The cost of vehicle tax for cars, motorcycles, light goods vehicles and trade licences