Overview

• From April 1, first-year VED for cars emitting 1–50 g/km of CO₂ and hybrids surged from £10 to £110 for 2025-26.
• Owners under the older 2001–2017 CO₂-banded scheme — 58% of UK motorists — now face average VED hikes of at least £150 in the first year.
• The Treasury is reviewing the £40,000 Expensive Car Supplement threshold for electric vehicles to address affordability concerns.
• Zero-emission vehicles retain a £10 first-year rate through 2029-30 but will pay the flat £195 standard rate on all renewals thereafter.
• Motorists can incur an £80 fine and void their insurance if they fail to renew VED on time, prompting widespread use of online number plate checkers.