details. Cars There are currently three payment schedules in effect, depending on whether the car was first registered before or after 1 April 2017, or before 1 March 2001. Registered before 1 March 2001 For cars registered before 1 March 2001 the excise duty is based on engine size. Registered before 1 April 2017 For vehicles registered between 1 March 2001 and 31 March 2017 charges are based on theoretical CO2 emission rates per kilometre. The price structure was revised from 1 April 2013 to introduce an alternative charge for the first year (the standard cost was not changed, and remained the same as for 2001 onwards). The "first year rate" only applies in the year the vehicle was first registered and is said by the government to be designed to send "a stronger signal to the buyer about the environmental implications of their car purchase". Alternative fuel cars (TC59) all warrant a £10 discount from the below except zero rated. Charges as applicable from 1 April 2022: Registered after 1 April 2017 The biggest changes are that hybrid vehicles will no longer be rated at £0 and that cars with a retail price of £40,000 and over will pay a supplement for the first five years of the standard rate (e.g. any subsequent renewal, even if the change of owner is within the first year). In addition, all non-zero-emissions cars or motorhomes with a "list price" of over £40,000 pay an additional. The official government website details the following: Policy objective The pre-2017 VED structure based on CO2 bands was introduced in 2001 when average UK new car emissions ratings were 178 g CO2/km. The Band A threshold of 100 gCO2/km below which cars pay no VED was introduced in 2003 when average new car emissions ratings were 173 g CO2/km. Since then, to meet EU emissions ratings targets average new car emissions ratings have fallen to 125 g CO2/km. This means that an increasingly large number of ordinary cars fell into the zero- or lower-rated VED bands, creating a sustainability challenge and weakening the environmental signal in VED. This is set to continue as manufacturers meet further EU targets of 95 g CO2/km set for 2020. The reformed VED system retains and strengthens the CO2-based First-Year-Rates to incentivise uptake of the very cleanest cars whilst moving to a flat Standard Rate in order to make the tax fairer,