EXCLUSIVE: An skilled has warned that new Automobile Excise Obligation automotive tax hikes this April enhance prices for motorists.
Motorists face a ‘value of possession’ blow as a result of automotive tax hikes (Picture: Getty) This text comprises affiliate hyperlinks, we are going to obtain a fee on any gross sales we generate from it. Be taught extra
Drivers are set to face increased automotive possession prices as costs are set to rise this spring. New Automobile Excise Obligation (VED) tax bands come into impact from April 1, with virtually all petrol, diesel and electrical automotive homeowners hit with value rises.
Siobhan Doyle, Shopper Author at Carwow, pressured driving was “getting costlier” in a blow to automotive homeowners and even prompt that new rises may even “affect car-buying choices”.
VED automotive tax bands will change from April 1 (Picture: Getty)
Talking completely to Specific.co.uk, Siobhan mentioned: “The April 2026 VED adjustments are comparatively small in isolation, however they add to a broader squeeze on motorists. The usual fee rises from £195 to £200 for many vehicles registered after 2017, consistent with inflation.
“Whereas a £5 enhance isn’t important by itself, it comes at a time when drivers are already going through rising gas, insurance coverage and upkeep prices, so it contributes to a rising complete value of possession. There are some offsets. EV consumers profit from the Costly Automobile Complement threshold rising to £50,000, eradicating a £425 annual cost for a lot of mid-range electrical fashions.
“General, it’s not a significant shock, but it surely reinforces a transparent development: driving is progressively getting costlier, and even modest tax adjustments can affect car-buying choices and family budgets.”
Vehicles registered after 2017 will likely be charged £5 extra, with annual payments rising from £195 to £200 from April 1. Nonetheless, first-year tax bands are up by as a lot as £200 extra, with the highest-polluting fashions paying as much as £5,690.
The charges don’t finish there, with vehicles registered between 2001 and 2017 going through a sliding scale of tax costs primarily based on automobile emission charges. The best polluting fashions emitting over 255g/km can pay £30 extra in 2026, with payments up from £760 to £790.
This 12 months’s VED charges are inflationary rises, with the annual highway tax charges rising yearly consistent with Retail Value Index (RPI).
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Nonetheless, it comes only a 12 months after a significant tax overhaul by Labour, which noticed 1000’s of kilos added to payments. HM Income and Customs (HMRC) confirmed the newest tax replace after Rachel Reeves’ Autumn Funds final 12 months.
HMRC mentioned: “As introduced at Funds 2025, the Authorities will introduce laws in Finance Invoice 2025-26 to uprate Automobile Excise Obligation charges for vehicles, vans and bikes consistent with the Retail Value Index (RPI) for 2026 to 2027. It will take impact from 1 April 2026.”
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