Brace yourself, UK drivers: your car tax bills are about to get a lot more expensive. But here's where it gets controversial—while some vehicles will see modest increases, others, particularly those registered between 2001 and 2017, are in for a shock. Starting April 1, 2026, Vehicle Excise Duty (VED) rates will rise across the board as part of an annual inflationary adjustment, leaving many motorists wondering if the system is fair. Here’s what you need to know—and why it’s sparking debate.
The changes will hit nearly all petrol, diesel, and electric car owners, but the impact won’t be evenly distributed. Vehicles registered after 2017 and those built before 2001 will see higher standard and first-year VED rates, but the real sting is for cars registered between 2001 and 2017. These vehicles face a sliding scale of charges based on CO2 emissions, with increases ranging from £5 to a whopping £30 this Spring. HMRC insists this is a standard uprating tied to Retail Price Index (RPI) inflation, but is it really that simple?
And this is the part most people miss—VED isn’t optional. It’s a legal requirement, meaning you’ll have to pay up if you want to keep driving. The hardest-hit group? Owners of high-emission vehicles in Band M (emitting over 255g/km of CO2), whose annual bills will jump from £760 to £790. Band L drivers (226-255g/km) aren’t far behind, with a £25 increase to £760. Even lower bands like F, G, and H will see £10 hikes, while Bands D and E (121-140g/km) will rise by £5. The only silver lining? Clean vehicles emitting under 120g/km are exempt from increases, with VED rates staying the same as in 2025.
Here’s a breakdown of the 2026 VED bands based on CO2 emissions (g/km):
- A (Up to 100): £20
- B (101 to 110): £20
- C (111 to 120): £35
- D (121 to 130): £170
- E (131 to 140): £200
- F (141 to 150): £225
- G (151 to 165): £275
- H (166 to 175): £325
- I (176 to 185): £360
- J (186 to 200): £410
- K (201 to 225): £445
- L (226 to 255): £760
- M (Over 255): £790
Controversy alert: Is it fair to penalize older car owners more heavily, especially when many bought these vehicles under different tax rules? And should electric car owners, who already benefit from lower running costs, be subject to the same increases as petrol and diesel drivers? Let us know your thoughts in the comments—this debate is far from over.
