Rachel Reeves confirms £4,850 charge for drivers | Tech News
Some motorists are set to pay £4,850 to make use of the roads beneath new car tax charges launched by Chancellor Rachel Reeves. New Vehicle Excise Duty (VED) charges got here into impact from April 1, with virtually all street customers set to pay more to get behind the wheel.
The group of drivers set to pay the very best charges are house owners of model new vehicles, with hefty first-year charges charging street customers 1000’s of kilos. Among these affected are model new vehicles emitting between 226 and 255g/km of CO2, with these drivers set to pay £4,850 between 2026/27.
This is £170 more than the £4,680 charge issued to motorists within this tax band earlier than the newest updates this April. However, the charge is properly over £2,000 more than street customers have been paying simply over a 12 months in the past.
Cars emitting between 226 and 255g/km of CO2 have been issued costs of simply £2,340 over the course of the 2024/25 tax 12 months. Cars on this band will not be paying the very best charges, with autos emitting 255g/km of CO2 hit with the costliest prices.
These street customers are compelled to pay £5,690 per 12 months, a £200 increase on the £5,490 issued to street customers forward of the April updates. Motorists can decide how many CO2 emissions their vehicle emits by checking particulars of their V5C logbook on the producer’s web site.
Meanwhile, annual MOT check outcomes additionally state the emission stage on the time of testing, permitting street customers to get a more correct examine. VED charges are up to date each spring according to Retail Price Index (RPI) inflation, with 2026 no completely different.
Confirmation of the new charges have been issued by HM Revenue and Customs (HMRC) shortly after Rachel Reeves’ Autumn assertion final November.
HMRC defined: “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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