Drivers in the United Kingdom are facing a new £225 charge to use the roads after Chancellor Rachel Reeves confirmed changes to Vehicle Excise Duty (VED). The fee applies to cars registered between 2001 and 2017, which are placed into one of 13 tax bands based on CO2 emissions.
Tax Band F Increases
Vehicles in tax band F, emitting between 141 and 150g/km of CO2, now pay £225 annually. This is a £10 increase from the £215 charged in the 2025/26 tax year and £15 more than the £210 fee in 2024/25. Popular hatchbacks, compact family SUVs, and economical estates fall into this category.
Higher Bands and Payment Options
Cars in the next band, emitting 151 to 165g/km of CO2, face a £275 yearly charge. VED is a legal requirement, and drivers must tax their vehicles annually. Payments can be made upfront for 12 months or in instalments, though instalments may incur additional charges. Motorists can pay online, by phone, or at a Post Office.
Road tax charges rise annually in line with inflation, based on the Retail Price Index (RPI). HM Revenue and Customs confirmed the April 2026 increase as a simple inflationary rise, stating: "As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate VED rates for cars, vans, and motorcycles in line with RPI for 2026 to 2027. This will take effect from 1 April 2026."
