Motoring Taxation in The United Kingdom - Road Usage Charges - London

London

The London congestion charge, which applied to most vehicles entering parts of Central London was introduced in 2003 with an extension into West London in 2007. Since 4 July 2005 the normal daily charge has been £8. The total receipts from the London Congestion Charge for 2006-07 was £213 million (provisional figures), which, after operating costs, left £123m of hypothecated revenue for London transport schemes.

Towards the end of 2006, the Mayor of London proposed the introduction of a variable congestion charge. Similarly to vehicle excise duty (VED), it would be based on emissions of carbon dioxide in grams/km. This would reduce or eliminate the charge for small and fuel-efficient vehicles, and increase it to up to £25 a day for large, inefficient vehicles such as SUVs, large saloons and compact MPVs with a Band G VED rating, that is, emissions of > 225 g/km of CO2. Electric zero-emissions vehicles are already exempt from the charge.

The London low emission zone, a pollution charge scheme, was introduced between February 2008 and January 2012 covering nearly all of Greater London Payment of the LEZ charge is in addition to any congestion charge required.

Read more about this topic:  Motoring Taxation In The United Kingdom, Road Usage Charges

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