Rachel Reeves confirms new £200 car tax charge for | Tech News
Cars registered after 2017 should not charged based mostly on vehicle emissions, with these automobiles as a substitute paying the usual VED fee. This charge did sit at £195 per 12 months, however the new rise from April 1 has added £5 to prices, bringing annual payments up to £200 every year to get behind the wheel.
The RAC has warned these not settling their payments yearly pays barely more because of an extra surcharge.
The RAC stated: “From 1 April 2026, the standard tax rate for all petrol, diesel or hybrid cars registered after 1st April 2017 rises to £200. If you pay for six months tax, it’ll cost £110, or £105 if you opt to set up a direct debit. If you pay in 12 monthly instalments, your total car tax cost will be £210.”
Electric vehicles was utterly exempt from VED street charges however that is no longer the case. EV exemptions got here to an finish final Spring, which means these with a battery electric model should now additionally pay the £200 annual charge.
Road tax is a legal requirement on the roads, which means motorists should renew their coverage to retain their freedom to drive. However, price rises don’t stop there for new car house owners, with some fashions more likely to be charged the Expensive Car Supplement.
This is an extra £440 payment, up from £425 final 12 months, utilized to house owners of model new vehicles with a listing price of over £40,000 or £50,000 for EVs.
This payment is utilized for a period of 5 years between the second and sixth years of possession, with prices carrying over to any new house owners if the model is bought on.
It means people may pay £2,200 per 12 months in extra tax over half a decade on high of the £200 normal payment. Confused.com stated: “Zero-emission cars pay £10 in year one, then move to the £200 standard rate.”
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