Added: 12 March 2018

In November 2017, as part of the Autumn Budget, the Government announced further changes to Vehicle Excise Duty (VED) following the radical changes that were implemented in April last year.

1. The first change is an increase in the First Year Rate VED for Passenger Cars with a CO2 emissions level of 75g/km or more: -

2. The second change applies only to diesel vehicles, and specifically only to those that have either not been tested or have failed to meet the standard set by the Real Driving Emissions Step 2 (RDE2) Nitrogen Oxide (NOx) test that now forms part of UK Type Approval testing.

Announced as part of the Autumn Budget, diesel cars will be subject to a one band increase if they do not meet the Euro 6 standards under real-world testing (RDE).  This will increase the first year payment by anywhere between £15 and £500.

All Mercedes-Benz diesel vehicles will, on 1 April 2018, be untested and therefore will need to have the higher band VED applied.

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