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.

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