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Annual road tax rises for motorbikes

Tax Disc

Vehicle Excise Duty (VED), otherwise known as road tax, will increase from April this year for motorbikes.

Announced yesterday in Chancellor George Osborne’s Spring budget, annual road tax for motorbikes over 150cc will jump by one pound for one off annual payments.

For those paying for six months, the charge will increase by £1.10 and for 12 direct debit payments, the price will rise by £1.05.

The increases also apply for larger capacity motorbikes. For bikes between 401-600cc, road tax has increased by £2 for a one off annual payment and £1.10 for those paying for six months,.

For 600cc and over, road tax now stands at £81 for a 12 month payment, an increase of £3, and for six months the price has jumped by £1.65.

For any motorbike under 150cc, the 12-month rate has not changed and remains at £17.

Tricycles have also been hit with prices jumping by £3 and £1.65 for 12 and six months respectively.

Fuel duty

The planned September fuel duty increase was also scrapped by Osborne yesterday, with fuel duty frozen at 57.95 pence per litre until at least the end of 2016.

Osborne, Chancellor of the Exchequer, said: “The last government’s plans for a fuel duty escalator meant taxes would rise above inflation every year.

“But I want to make sure that the falling oil price is passed on at the pumps. So I am today cancelling the fuel duty increase scheduled for September.

“Petrol frozen again. It’s the longest duty freeze in over twenty years. It saves a family around £10 every time they fill up their car.”

The announcement means the coalition government has lived up to its promise of freezing fuel duty for the duration of their term in office.

However, despite petrol prices falling to a five-year low at the beginning of 2015, fuel prices have gradually risen over the last three months.

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