Biggest car tax change on April 1 with £200 added | Tech News

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Biggest car tax change on April 1 with £200 added | Tech News

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Petrol, diesel and electric car drivers might be hit with greater car tax bands from April 1 as new Vehicle Excise Duty (VED) charges come into impact. Traditional petrol and diesel combustion fashions would be the most affected, with rises throughout the board and virtually each vehicle affected. 

However, some vehicles might be more impacted than others, with sure street customers set to be slapped with the largest price hikes within months. Brand new, extremely polluting petrol and diesel fashions face the steepest hikes, with new homeowners of vehicles straight off the manufacturing line that emit over 255g/km of CO2 set to pay £200 more.

These first-year VED payments doubled final 12 months, with charges rising from £2.745 per 12 months to an eye-watering £5,490 every year. However, motorists are set for one more inflationary rise come April 1, with payments leaping to a whopping £5,690.

It’s not the one sizeable hike, with greater first-year VED tax rises making use of to automobiles on a sliding scale relying on vehicle emissions information. Cars emitting between 226 and 255g/km of fuel pays£4,850 per 12 months to make use of the roads, £170 more than the present £4,680 charge.

HM Revenue and Customs (HMRC) beforehand revealed new uprated VED charges would come into impact from April 1, with Labour since confirming charges would rise.

Exchequer Secretary Dan Tomlinson acknowledged: “Vehicle Excise Duty (VED), sometimes known as ‘road tax’ or ‘vehicle tax’, is a tax on vehicles used or kept on public roads.

“Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.

“As introduced by the federal government at Budget, from 1 April 2026, VED charges for vehicles, vans, bikes and heavy items automobiles (HGVs) might be uprated in line with the Retail Price Index (RPI) in 2026-27.”

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