Petrol, diesel and EV owners face VED rise from | Tech News
Petrol, diesel and electric car owners face a Vehicle Excise Duty (VED) increase within months as the most recent car tax bands have been revealed. Motorists will face greater payments from April 1, 2026, as half of an annual inflationary increase of VED costs.
Bills rise yearly in step with Retail Price Index (RPI) inflation, with consultants at Pete Barden revealing precisely how a lot prices might rise. Petrol and diesel owners are most affected and are set to pay the very best charges, with VED usually calculated primarily based on total emissions. Electric car owners had been beforehand exempt from VED charges however began paying costs earlier this 12 months after radical adjustments got here into impact.
According to Pete Barden, the usual VED charges for automobiles registered on or after 1 April 2017 will rise by £10 from £190 to £200. This is identical throughout the board, regardless of whether or not motorists have a clean, fully-electric EV or one of the highest-emission fashions on the highway.
However, there are variations for others with first-year owners amongst these paying the very best charges. Brand-new petrol and diesel owners can pay probably the most with first-year VED charges up by lots of of kilos.
The highest polluting fashions emitting over 255g/km of CO2 can pay £5,690 per 12 months to make use of the roads from April 2026, up from the present £5,490 charge. Those emitting between 226 and 255g/km of CO2 can pay £4,850 in 2026/27, an increase on the £4,680 charge owners presently face.
Brand new electric car owners will nonetheless pay the bottom charges, with drivers nonetheless set to pay simply £10 for the whole 12 months. VED charges are additionally up for automobiles registered between 2001 and 201,7 with owners paying a sliding scale of costs primarily based on what band they’re positioned in.
The most polluting fashions in Band M face the very best will increase with payments up from £760 to £790 in 2026. Band L drivers can pay £25 more, with payments set to rise from £735 to £760 from April 1. Meanwhile, owners in Bands I, J and Okay can pay £15 more.
But, owners of totally electric fashions and clean automobiles emitting no more than 110g/km of CO2 will nonetheless pay the identical with a £20 annual fee staying in place.
HM Revenue and Customs (HMRC) confirmed VED charges would rise with RPI inflation after the Autumn Budget was printed.
They mentioned: “As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.”
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