The DVLA has set out the brand new £200 cost.
Petrol drivers have been hit with new £200 prices (Picture: Getty)
UK petrol drivers are being slapped with new £200 prices this Could that began in April.
The DVLA has confirmed the second 12 months licence charges for Car Tax which shall be levied in opposition to automobiles first registered on or after April 1, 2017, relevant from April 1, 2026 onwards.
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As confirmed by the RAC, from April 1, 2026 the usual tax fee for all petrol, diesel and hybrid automobiles registered after April 1 2017 rises to £200 from the present £195.
For these paying in instalments by direct debit, the value shall be increased nonetheless, at £210.
That is only for automobiles valued at below £40,000 (or £50,000 for an EV), when it was first bought. These above the thresholds can pay an ‘costly automotive complement’ that can add one other £440 to the annual value.
The RAC explains: “From 1 April 2026, the usual tax fee for all petrol, diesel or hybrid automobiles registered after 1st April 2017 rises to £200.
When you pay for six months tax, it will value £110, or £105 in the event you decide to arrange a direct debit. When you pay in 12 month-to-month instalments your whole automotive tax value shall be £210.
“In case your automobile had a listing value that exceeded £40,000 when it was first bought (or £50,000 in case your automotive is electrical) then you may additionally be chargeable for the ‘luxurious automotive tax’ payment, which now provides £440 to the automobile’s annual VED prices – taking it as much as £640.
“You might pay much less or extra in case your automotive was first used earlier than 2017. The precise payment in your annual highway tax will boil all the way down to the 12 months your automotive was first registered, the kind of gasoline it makes use of and its tailpipe emissions.”
Mike Thompson, Chief Working Officer at Leasing Choices, mentioned: “In case your automotive tax renewal is after 1 April 2026, you’ll have to finances for the brand new £200 normal fee, up from £195. For automobiles with increased emissions or increased listing costs, the modifications will imply a bigger improve, so it is vital to issue these into your family finances.”
He added: “When you’re contemplating a brand new automotive, it’s important to check VED charges for various gasoline varieties, reminiscent of petrol, diesel, hybrid, or electrical automobiles. Electrical automobiles (EVs) priced round £40k–£50k might profit from the elevated luxurious tax threshold if bought earlier than April. For firm automobiles, examine along with your employer or payroll for up to date BiK calculations to grasp how these tax modifications will have an effect on you.”
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