THE cost of your annual road tax for your van is likely to rise in April 2019.

Chancellor Hammond announced in his Budget on Monday (October 29, 2018) that Vehicle Excise Duty (VED) would increase for vans by the Retail Prices Index with effect from April 01, 2019.

However, the strange anomaly in the VED for vans is receiving scrutiny. Currently those vans meeting more stringent Euro 6 emission rules pay more VED than those van meeting Euro 4 or 5 standards.

The Government said that, following a consultation on reforming VED to incentivise van drivers to make the cleanest choices when purchasing a new van, it would shortly publish a response to the consultation.

Currently a Euro 6 emission van pays VED at the rate of £250; a Euro 4 or 5 van just £140 a year. See Vehicle Excise Duty for vans 2018/19.

Electric vans pay zero rated VED.

However, one good piece of news for keeping down operating costs was that fuel duty rates will remain frozen for the tax year 2019-20.