UK Vehicle Excise Duty Increases for Petrol and Diesel Cars from April 2026
New car tax charges are set to raise Vehicle Excise Duty (VED) bills for road users across the United Kingdom this spring. The changes will impact petrol, diesel, and electric car owners, with increases taking effect from April 1, 2026, under the current Labour Party government.
Revised Tax Bands Based on CO2 Emissions
Vehicle Excise Duty bands are determined by grams per kilometer of CO2 emissions. The updated structure introduces higher rates across multiple categories, affecting vehicles registered between 2001 and 2017.
Lower Emission Bands:
- Band A (up to 100 g/km CO2): £20
- Band B (101-110 g/km CO2): £20
- Band C (111-120 g/km CO2): £35
Mid-Range Emission Bands:
- Band D (121-130 g/km CO2): £170
- Band E (131-140 g/km CO2): £200
- Band F (141-150 g/km CO2): £225
- Band G (151-165 g/km CO2): £275
Higher Emission Categories Face Steepest Rises
The tax increases become more substantial for vehicles with greater CO2 outputs:
- Band H (166-175 g/km CO2): £325
- Band I (176-185 g/km CO2): £360
- Band J (186-200 g/km CO2): £410
- Band K (201-225 g/km CO2): £445
Premium Emission Bands:
- Band L (226-255 g/km CO2): £760
- Band M (over 255 g/km CO2): £790
These revised rates will apply to vehicle tax payments made on or after April 1, 2026. Motorists are advised to consult official government resources for specific technical details regarding their vehicles.
Additional Taxation Considerations
Where Direct Debit payment options are available, the displayed rates will apply. First-time vehicle purchasers will encounter different tax rates for their initial license, with standard rates taking effect from the second license onward.
The government has also clarified that motorcycles and tricycles exceeding 450 kilograms must be taxed within the Private Light Goods (PLG) tax class, ensuring comprehensive coverage across all vehicle types.
This restructuring of Vehicle Excise Duty represents a significant shift in automotive taxation policy, with implications for millions of drivers nationwide.
