Rachel Reeves has announced new vehicle tax bands that could see owners of older cars facing charges of up to £790. The changes, which came into effect for 2026/27, affect cars made before 2017, with a sliding scale based on emissions.
Tax Bands for Pre-2017 Cars
Cars manufactured between 2001 and 2017 are divided into 13 tax bands, with lower-emission vehicles paying less. Rates range from £20 to £790, but many cars fall into bands D to F, costing between £170 and £225. Older cars are likely to incur higher fees, making it essential for buyers to research tax payments when purchasing a used vehicle.
Expert Advice
Andy Wood, tax expert at Tax Barrister UK, said: “A lot of drivers still assume road tax is calculated purely on the age of the vehicle, but emissions remain one of the biggest factors in determining how much motorists pay. Even relatively modest differences in CO₂ output can place vehicles into entirely different tax bands, which can have a noticeable impact on annual running costs.”
Owners of vehicles emitting under 100 g/km of CO₂ have also lost a free tax perk and now must pay at least £20 a year. Andy added: “The removal of the zero-rate band for cars emitting under 100g/km has caught some drivers off guard because many had become used to paying nothing at all. While £20 may not sound substantial on its own, it reflects a wider shift towards bringing more vehicles into the VED system regardless of emissions performance.”
