Motorists owning vehicles registered between 2001 and 2017 are among those set to be affected by major new car tax updates in just weeks. Vehicle Excise Duty (VED) costs will rise for almost all petrol, diesel and electric car owners from April 1, 2026 as part of an annual inflationary increase.
Standard and first-year VED rates will rise for cars registered after 2017, while cars built before 2001 are also set to be hit with higher bills. However, by far the biggest changes affect cars between 2001 and 2017, where owners are charged a sliding scale of VED tax fees based on overall emissions.
VED is a legal requirement, meaning road users are forced to pay the annual charges to retain their freedom to drive. The most polluting vehicles emitting over 255g/km of CO2 in the Band M category are most affected by the new fees, with bills set to increase from £760 per year to £790.
Band L motorists, cars producing between 226 and 255g/km of CO2 are the next most impacted, with annual bills up £25 from £735 to £760 per annum. Cars in Bands I, J and K face £15 price rises from April, while motorists in bands F, G and H will see bills increase by £10,
Prices jump £5 for lower polluting vehicles in Bands D and E, accounting for models that produce just 121 to 130g/km and 131 to 140g/km of Co2.