Vehicle Excise Duty (VED) rates are based on carbon dioxide (CO2) emissions. The “defeat devices” recently found in some VW diesel cars affect nitrogen dioxide (NO2) emissions. There is therefore currently no evidence that this issue has resulted in an artificial reduction in VED revenues.
UK taxpayers will not incur higher VED if their existing vehicles are found to be fitted with illegal software that manipulates emissions tests. Following VW’s admission of using ‘defeat devices’ in diesel cars there is an ongoing UK government investigation.