Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many vehicles manufactured prior to the 2020 changes to Vehicle Excise Duty (VED) rates are subject to the increased diesel vehicle supplement due to their first registration date falling after those changes; whether her Department plans to review the legislation to ensure vehicles of the same year, make and model are subject to the same VED rate regardless of registration date; and whether her Department has made an assessment of the potential impact of this tax difference on the Ministry of Defence fleet and related costs.

Since 1 April 2020, the Worldwide Harmonised Light Vehicle Test Procedures (WLTP) have been used by the DVLA to measure the CO2 emissions of a car, rather than the CO2 emissions stated by an EU Certificate of Conformity or a UK approval certificate.

Where a car has not been tested to WLTP standards, the car must be taxed according to its engine size and in the Private Light Goods taxation class. This means its tax rate is based on its engine size, rather than CO2 emissions.

While the Ministry of Defence (MOD) keeps its own register of the vehicles it owns, the MOD is not a licensing authority, meaning the first registration of an MOD vehicle will be its point of first registration with the DVLA.

The Government keeps the tax system under review.