Finance Bill 2002: EXPLANATORY NOTE
CLAUSE 15: CARS REGISTERED ON OR AFTER 1 MARCH 2001: RATES OF DUTY
SUMMARY
1. Clause 15 amends the structure of Vehicle Excise Duty for cars first registered after 1 March 2001, creating a new low tax band for vehicles with emissions of 120 grammes of carbon dioxide per kilometre or less. The new structure will take effect for licences taken out with effect from 1 May 2002.
DETAILS OF THE CLAUSE
2. Subsection (1) amends the table of rates in paragraph 1B of Schedule 1 to the Vehicle Excise and Registration Act 1994 setting out the rates of duty payable by cars first registered on or after 1 March 2001. Specifically, it sets out a new tax band for cars with very low emissions of carbon dioxide. Tax rates in the remaining bands are unchanged.
3. Subsection (2) provides that the new table will apply to licences taken out on or after 18 April 2002 for a period beginning on or after 1 May 2002.