Higher vehicle tax rates came into force earlier this year and will remain in place under new Prime Minister Andy Burnham, with owners of cars made before 2017 potentially facing a £275 charge. Rates can fluctuate widely based on the model and emissions of the vehicle, meaning drivers could pay anywhere from £20 to £790 annually.
Tax Bands and Charges
Rates for 2026/27 came into effect from April and will stay in place under Burnham's leadership. Bands range from A to M, with most cars falling between bands E and H. For example, the charge for Band G is £275. Owners of cleaner vehicles emitting under 100g/km of CO2, previously exempt, now must pay £20 a year.
Expert Insight
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.”
Impact on Drivers
Wood 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.” Drivers considering buying an older motor are advised to research the specific tax band of the vehicle to avoid unexpected bills.
