Overview
- The government will uprate VED for cars, vans and motorcycles in line with the Retail Price Index for 2026–27, taking effect on 1 April 2026, according to HMRC.
- Standard-rate duty for cars first registered from April 2017 is reported to rise to about £200, affecting petrol, diesel and electric models.
- First-year charges for brand-new high-emission cars are reported to increase to £5,690, while new electric cars are set to pay £10 in the first year.
- Most cars registered between 2001 and 2017 are expected to see CO2-band increases, with Band M rising from £760 to about £790 and other bands up by smaller amounts.
- The detailed amounts are reported estimates pending passage of the Finance Bill, and the OBR projects VED receipts of roughly £10 billion by 2027/28.