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VED

From 1st April 2017, the biggest changes to Vehicle Excise Duty (commonly known as ‘road tax’) for many years will come into effect. Instead of VED levies being calculated using a vehicle’s CO2 emissions, a flat-rate system will be imposed from year two onwards whereby almost all new car buyers will have to pay an annual sum of at least £140 – and often considerably more. The cost of ownership during year one is also set to soar, with the VED First Year Rate now as much as £2,000.

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