New Environmental Taxes for Larger Vehicles and HGVs Take Effect
Drivers of larger vehicles are now subject to new environmental taxes, with heavy goods vehicles facing revised tax rates and road charges that came into force from April. The changes impact both Vehicle Excise Duty and the HGV road user levy, aiming to better reflect vehicle weight and environmental impact.
Revised Charges for Heavy Goods Vehicles
A Treasury spokesperson stated that these adjustments ensure road charges maintain fairness for operators while accounting for environmental considerations. Owners and operators of heavy goods vehicles weighing 12 tonnes or more, including UK and international entities, as well as trade licence holders, are affected by the new rates.
For lorries exceeding 44,000kg, the annual Vehicle Excise Duty is now £1,703, or £851.50 for a six-month period. Additionally, cleaner Euro 7 vehicles face an annual charge of £619, which increases to £804 for older, more polluting models.
Detailed Levy Breakdown by Vehicle Category
The HGV road user levy has also been updated across various weight and emissions categories:
- General haulage lorries now pay £380 per year, up from £365.
- Lorries weighing between 12,000kg and 31,000kg that meet Euro VI standards are charged £161 annually, while older vehicles pay £209.
- For vehicles between 31,001kg and 38,000kg, the annual levy is £387 for cleaner models and £503 for older ones.
- The highest band, for vehicles above 38,000kg, costs £619 for Euro VI lorries and £804 for non-compliant models.
- Two-axle lorries in the 15,000kg to 27,000kg range pay £322 annually.
Additional charges apply for vehicles towing heavy trailers, with some combinations reaching up to £654 per year in Vehicle Excise Duty.
Impact on Buses and Coaches
The tax changes also extend to passenger vehicles, with smaller buses featuring up to 17 seats now paying £177 annually. Mid-sized vehicles are charged £240, while larger coaches face rates between £350 and £530, depending on their capacity.
Government Rationale and Future Adjustments
HM Treasury explained that increasing Vehicle Excise Duty rates by the Retail Price Index for 2025 to 2026 will help maintain receipts in real terms. This measure ensures that motorists contribute fairly to public finances while supporting environmental goals through differentiated charges based on emissions and weight.
