http://www.bbc.co.uk/news/business-33447106
New Vehicle Excise Duty (VED) bands are to be introduced, with revenues eventually going towards a new Roads Fund, the chancellor has announced.
For cars registered after 1 April 2017, VED will be transformed into three bands – zero, standard and premium.
George Osborne said the “standard” charge of £140 would cover 95% of all cars. Revenues will be paid into the Roads Fund from 2020-21.
The chancellor also said that fuel duty would remain frozen this year.
Mr Osborne said: “There will be no change to VED for existing cars – no one will pay more in tax than they do today for the car they already own.”
He added that the £140 rate was less than the average £166 that motorists pay at present.
However, the new rates will not apply in the first year after registration. There will be special first year rates linked to a car’s carbon emissions.
And apart from creating a whole new system, or in reality two systems to run in parallel, this does what exactly?