Currently, for vehicle excise duty (VED) and company car tax (CCT), the applicable carbon dioxide emissions figure for cars, is based on the New European Driving Cycle (NEDC) test procedure.
From 1 September 2017 a new test procedure was introduced known as the Worldwide harmonised Light-Vehicles Test Procedures (WLTP). Existing EU legislation requires car manufacturers to report their results under this new test cycle from Autumn 2017, as well as providing figures that relate to the current NEDC test cycle.
From April 2020, the WLTP system will be introduced in the UK.
For VED, this measure will affect cars first registered from 1 September 2017. For CCT this will take effect from the beginning of the 2017/18 tax year.
This measure affects all motorists and employers who provide company cars, although this will not change the vehicle excise duty or taxes related to the company car tax regime. VED and CCT bands will continue to be based on the carbon dioxide emissions figures that are compatible with the current NED test. WLTP test procedure values should be ignored.