Drivers of the most polluting vehicles could be forced to pay up to £790 in annual car tax from April 2026, with VED rates rising in line with inflation
Motorists with registration plates from specific periods could be stung with annual car tax bills of £790 just months into 2026.
Vehicle Excise Duty (VED) charges increase each spring in accordance with Retail Price Index (RPI) inflation, with fees scheduled to jump on April 1, 2026.
Owners of petrol, diesel and electric vehicles will all encounter steeper costs, with standard VED rates for cars registered after 2017 anticipated to climb beyond the current £195 levy. Yet slightly older motors registered between 2001 and 2017 will face VED on a graduated scale determined by vehicle emissions, with some forking out nearly £800.
The most polluting vehicles will bear the brunt, with specialists at Pete Barden predicting that cars producing over 255g/km of CO2 will be slapped with annual charges of £790, This represents a £30 hike from the existing £760 fee — a substantial blow mere months into the fresh year.
Registration plates are updated twice yearly, with models bearing age markers between “01” and “17” amongst those hit by the revised charges. Nevertheless, fresh designs are also launched each September, meaning those with plates spanning “61” to “77” could likewise encounter the £795 levy, according to the Express.
Which? clarified: “Most cars first registered as new after 1 March 2001, but before 1 April 2017, continue to be taxed at their previous, respective rates, which usually rise in line with official inflation figures each year. These are based on official CO2 emissions.
“The amount of CO2 your car produces puts it into one of 13 bands, which are assigned letters A to M.” But the tax hikes don’t end there, especially for those driving gas guzzlers emitting between 226 and 255g/km of CO2.
These motorists will see their annual bills leap by £25, from £735 to a hefty £760 starting from 1 April. Owners of vehicles belching out between 201 and 225g/km of CO2 won’t escape either, with their fees set to climb from £430 to £445 come springtime.
HM Revenue and Customs (HMRC) chimed in, stating: “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.”
This is not the first time that motorists have seen their car tax hike, after Labour said they are committed to reducing Britain’s CO2 emissions with cars. Last March, it was revealed that some motorists would have to pay an eye-watering £2,745 extra as part of the government plans to bring the UK closer to net zero.
The lineup of CO2 heavyweight new models includes speedsters from Audi, Aston Martin, Bentley, and BMW, with Mercedes also trapped in the fast lane of affected brands, when the tax hike was confirmed. These unfortunate lines joined Ford, Porsche, and Rolls-Royce who were already on the list.
However, some drivers have not minced their words as they hit out at the toll. Glen Sanderson, helmsman of the Conservative stronghold at Northumberland County Council, slammed this move as a “slap in the face” to diligent drivers making the clean switch.
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