Green measures

Fuel duty

The Chancellor announced that the reduction in pump prices means the 2p per litre increase on fuel duty will take effect from 1 December 2008. Further increases of 1.84p per litre from 1 April 2009 and 0.5p per litre above indexation from 1 April 2010 will go ahead, as planned.

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Vehicle excise duty

Six new bands of VED will be introduced in 2009, the Chancellor announced, taking the total to 13.

By 2010 the rate bands will start to separate out, with increases of up to £30 that year. Also due in 2010 is the First-Year Rate - the new higher Year One VED rate for new cars.

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Air passenger duty

New air passenger duty rates will apply from 1 November 2009, based on four distance bands, and these will increase from 1 November 2010, when the maximum standard rate will stand at £170.

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Pre Budget Report 2008

Disclaimer:
This guide is prepared as a general guide only. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by the author or publisher. Always seek professional advice before acting.