Petrol and diesel drivers with cars registered before 31 March 2017 are at risk of a new £225 car tax charge under updated Vehicle Excise Duty (VED) bands introduced by the Labour Party government. The Autumn Budget last year saw Chancellor Rachel Reeves confirm increases for motorists.
Which cars are affected?
For vehicles registered between 1 March 2001 and 31 March 2017, Band F applies to cars emitting 141-150g/km of CO2. The annual VED rate for this band is £225 for the 2026/2027 tax year. A six-month payment option is available at £123.75, while a direct debit rate of £236.25 applies.
The first-year rate is based on the vehicle's CO2 emissions. After the first year, a standard rate applies. Most drivers pay £200 annually if they opt for a single payment, though rates are slightly higher when paying in instalments.
How are rates determined?
Most cars first registered after 1 March 2001 but before 1 April 2017 continue to be taxed at their previous rates, which typically rise with inflation each year. These rates are based on official CO2 emissions. Vehicles are placed into one of 13 bands, labelled A through M, according to their emission levels.
Legal requirements and penalties
In the UK, it is a legal requirement to have valid road tax for most vehicles driven on public roads. Driving without valid road tax can lead to fines of up to £1,000, vehicle clamping, and even prosecution. Checking your car tax status ensures compliance with the law and helps avoid potential penalties.
Occasionally, errors may occur in the system. Verifying your car tax status with the DVLA ensures the information held is accurate. When purchasing a used car, it is crucial to check the road tax status, as tax does not transfer to the new owner. You are responsible for taxing the vehicle immediately after purchase. Even if you have set up a Direct Debit for automatic renewal, it is advisable to periodically check your car tax status to confirm everything is in order.
