Section 71 | Vehicle excise duty: zero-emission vehicles

(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.