Road tax April 2026 rise Treasury update as cars | Tech News

The Treasury has issued an update detailing vital adjustments to Vehicle Excise Duty (VED) set to take impact from April 2026. Petrol and diesel car homeowners face will increase this 12 months, with essentially the most polluting automobiles going through a first-year charge anticipated to succeed in £5,690 from 1st April.

The hike follows sweeping adjustments to Vehicle Excise Duty (VED) charges launched final 12 months, which noticed some fashions hit with an eye-watering £2,745 increase. Popular marques together with Ford and Toyota will see chosen fashions affected, while premium manufacturers such as BMW, Mercedes and Audi may even really feel the influence.

Vehicles emitting more than 225g of CO2 per kilometre fall underneath Vehicle Excise Duty (VED) expenses, with these producing 201-225g/km paying £430, 226-255g/km £735 and over 255g/km £750.

These bands are scheduled to rise, with the £735 bracket climbing to £760 and the over 255g/km class anticipated to succeed in £790 from April 2026.

In a contemporary development, Labour MP Neil Duncan-Jordan has questioned how emissions are decided, suggesting that somewhat than counting on producers’ claims, calculations must be based mostly on precise MOT check outcomes. He challenged Chancellor Rachel Reeves: “Whether the planned increase in vehicle tax from April 2026 will be based on (a) emissions from vehicles based on factory information when new and (b) MOT results annually.”

In response, 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 cars, vans, bikes and heavy items automobiles (HGVs) will likely be uprated in keeping with the Retail Price Index (RPI) in 2026-27.”

Independent MP James McMurdock also queried the Chancellor, asking: “Whether she plans to review the construction of Vehicle Excise Duty.”

Mr Tomlinson responded: “Vehicle Excise Duty (VED), generally recognized as ‘street tax’ or ‘car tax’, is a tax on automobiles used or saved on public roads. Different charges apply to cars, vans, and bikes, and the speed for every vehicle is calculated in line with a vary of elements, such as its date of first registration, weight, or CO2 emissions. The authorities has no present plans to review this construction.

“At Autumn Budget 2025, the government announced the introduction of Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028. Drivers will pay for their mileage alongside their existing Vehicle Excise Duty (VED).”

The Government has determined to considerably increase the first-year Vehicle Excise Duty (VED) expenses for petrol and diesel automobiles from April 2025. These are hefty charges paid by patrons of brand-new cars earlier than they transition to the usual charge.

Charges have risen on a sliding scale, with most increased bands seeing charges that double from their 2024 ranges. Vehicles emitting over 255 g/km of CO2 confronted the steepest rise of £2,745, affecting some of essentially the most generally pushed cars on Britain’s roads.

They elevated to £5490 for the primary 12 months – and that is anticipated to rise to £5,690 from 1st April 2026.

Mainstream producers such as Ford and Toyota will see sure fashions affected. BMW, Mercedes and Audi automobiles may even be impacted.

Premium manufacturers will bear the brunt of the adjustments. Models from Porsche, Lotus, Lamborghini and McLaren are amongst these set to face the new levy.

Chancellor Rachel Reeves introduced the measure to encourage customers to buy electric automobiles and widen the hole between ‘increased polluting’ cars and EVs.

The first-year tax determine is set by the quantity of carbon dioxide the vehicle emits. Currently, these selecting electric automobiles (EVs) benefit as EVs are exempt from Vehicle Excise Duty (VED), whereas cars emitting between 111g and 150g/km of CO2 confronted a £220 charge.

Vehicles emitting over 255g/km face a hefty first-year payment of £5,490 – a determine set to increase additional. Last April’s adjustments noticed EV homeowners paying a nominal £10 for his or her first 12 months’s VED-a charge that has just lately been frozen.

The anticipated first-year car tax charges from 1 April 2026 are as follows:

• 0g/km – Remains at £10.
• 1-50g/km – Rising from £110 to £115.
• 51-75g/km – Rising from £130 to £135.
• 76-90g/km – Rising from £270 to £280.
• 91-100g/km – Rising from £350 to £365.
• 101-110g/km – Rising from £390 to £405.
• 111-130g/km – Rising from £440 to £455.
• 131-150g/km – Rising from £540 to £560.
• 151-170g/km – Rising from £1,360 to £1,410.
• 171-190g/km – Rising from £2,190 to £2,270.
• 191-225g/km – Rising from £3,300 to £3,420.
• 226-255g/km – Rising from £4,680 to £4,850.
• Over 255gkm – Rising from £5,490 to £5,690.
• After the primary 12 months, the usual charge is anticipated to be £200 (at the moment £195).

A full listing of new fashions emitting over 255 g/km has been launched.

• Audi RS6 4.0 TFSI V8
• Audi S8 4.0 TFSI V8
• McLaren GT 4.0T V8
• Audi R8 5.2 FSI V10
• Lamborghini Huracan 5.2 V10
• Chevrolet Corvette Stingray 6.2 V8
• Volkswagen Amarok 3.0 TDI
• Aston Martin DBX 4.0 V8
• Ferrari Roma 3.8T V8
• Audi SQ7 4.0 TFSI V8
• Range Rover Sport 4.4P V8
• Jaguar F-Pace 5.0 P575 V8
• Aston Martin DB12 4.0 V8
• Porsche 911 3.7T 992 Turbo
• Jeep Wrangler 2.0 GME
• Ford Ranger 2.0 TD EcoBlue
• Audi RSQ8 4.0 TFSI V8
• Lotus Emira 3.5 V6
• Bentley Continental 4.0 V8
• Audi SQ8 4.0 TFSI V8
• Aston Martin Vantage 4.0 V8
• Toyota Hilux 2.8D
• Porsche Macan 2.9T V6
• Mercedes-Benz SL55
• Range Rover 4.4 P530 V8
• Mercedes-Benz AMG GT 4.0 V8
• Porsche 718 Cayman 4.0 GT4
• Lamborghini Urus 4.0 V8 BiTurbo
• Audi RS7 4.0 TFSI V8
• Ford Mustang 5.0 V8
• Toyota Land Cruiser 2.8D
• Bentley Continental 6.0 W12
• Mercedes-Benz GLC63
• Ford Ranger 3.0 V6
• INEOS Grenadier 3.0P
• Range Rover 4.4 P615 V8
• Land Rover Defender 90 5.0 P425 V8
• Rolls-Royce Ghost 6.75 V12
• Ford Ranger 3.0 EcoBlue
• Mercedes-Benz G63
• Ferrari Purosangue 6.5 V12
• Rolls-Royce Cullinan 6.75 V12
• Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
• Mercedes-Benz GLE63
• Maserati Levante 3.0 V6
• Porsche Cayenne 4.0T V8
• BMW M8 4.4 V8
• Maserati MC20 3.0 V6
• Land Rover Defender 110 5.0 P425 V8
• Mercedes-Benz G400D
• Lamborghini Revuelto 6.5 V12
• Bentley Bentayga 4.0 V8
• BMW X7 M 4.4 V8
• BMW X6 M 4.4 V8
• BMW Alpina XB7 4.4 V8
• Bentley Flying Spur 4.0 V8
• Maserati Levante 3.8 V8
• BMW X5 M 4.4 V8
• Mercedes-Benz GLS63h

Cars costing more than £40,000 appeal to VED luxurious car tax surcharge

Vehicles that value more than £40,000 when new (together with choices) incur an further annual charge of £425 (growing from £410) on high of the usual annual VED car tax charges, from their first by means of sixth birthdays.

Cars that value more than £40,000 new (together with choices) incur an further charge of £425 for 5 years, beginning when the car is taxed for the second time. This means you’re out of pocket to the tune of £2,125 in further tax by the time the car turns six.

From 1 April 2026, the brink for the “luxury car tax” (£425 surcharge) for EVs will increase to £50,000, whereas remaining at £40,000 for petrol/diesel cars.

If you’re driving a fashionable traditional or simply a dependable older runaround registered earlier than March 2001, your tax relies on VED engine dimension classes somewhat than CO2 emissions.