Part 3

Other taxes

Taxes relating to vehicles

Vehicle excise duty: zero-emission vehicles
71
1
VERA 1994 is amended as follows.
2
In section 62 (other definitions), after subsection (1A) insert—
1AA
For the purposes of this Act, a vehicle is a “zero-emission vehicle” if the vehicle’s rate of CO₂ emissions measured in grams per kilometre driven, or grams per kilowatt hour, is zero.
3
In Schedule 1 (annual rates of duty)—
a
in paragraph 1—
i
in sub-paragraph (2), after “propelled” insert “, or zero-emission,”;
ii
in sub-paragraph (2A), after “propelled” insert “, or zero-emission,”;
b
in paragraph 1A (vehicles to which Part 1A applies), after sub-paragraph (1) insert—
1A
Sub-paragraph (1B) has effect where—
a
the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,
b
the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and
c
this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.
1B
For the purposes of this Part of this Schedule—
a
the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and
b
accordingly the applicable CO₂ emissions figure is to be taken to be zero.
c
in paragraph 1GA (vehicles to which Part 1AA applies), after sub-paragraph (1A) insert—
1B
Sub-paragraph (1C) has effect where—
a
the vehicle’s rate of CO₂ emissions in grams per kilometre driven is zero,
b
the certificate mentioned in sub-paragraph (1)(b) does not specify a CO₂ emissions figure, and
c
this Part of this Schedule would apply to the vehicle if the condition in sub-paragraph (1)(b)(ii) were met.
1C
For the purposes of this Part of this Schedule (and notwithstanding anything in sub-paragraph (5))—
a
the certificate is regarded as specifying a CO₂ figure of zero in terms of grams per kilometre driven, and
b
accordingly the applicable CO₂ emissions figure is to be taken to be zero.
d
in paragraph 1N, in sub-paragraph (b), at the end insert “or a zero-emission vehicle”;
e
in paragraph 2 (motorcycles)—
i
in sub-paragraph (1)(a), after “propelled” insert “or a zero-emission vehicle”;
ii
in sub-paragraph (3), in the definition of “motorcycle”, after “propelled” insert “, or zero-emission,”.
4
In Schedule 2 (exempt vehicles)—
a
in the italic heading before paragraph 20G, at the end insert “etc”;
b
in paragraph 20G (electrically propelled vehicles), after sub-paragraph (1) insert—
1A
A zero-emission vehicle is an exempt vehicle.
5
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2025.