Drivers are being warned of new car tax changes launching in the coming months that could see some petrol and diesel vehicle owners slapped with enormous charges.
Ahead of the new financial year in April, experts are warning Britons of new car tax rates being rolled out for petrol, diesel and electric car owners.
Chancellor Rachel Reeves announced in last year’s Autumn Budget that Vehicle Excise Duty charges would rise in line with inflation from April 1, for cars, vans and motorcycles.
This followed the 2024 Budget, which saw the Chancellor introduce new VED first year rates for drivers who buy new vehicles.
The Government stated that it would strengthen existing incentives to buy new zero and low emission vehicles by “widening the differentials” between ZEVs, hybrids and internal combustion engine vehicles.
Under the new car tax regime, any newly registered zero emissionvehicles will pay the lowest first year rate of £10 until 2029-2030.
Further increases were seen for cars emitting between one and 50g of CO2 per kilometre, rising to £110, while cars emitting 51-75g/km would pay £130.
All other rates for cars emitting 76g/km and above would double from their current rate, leaving some drivers hundreds or even thousands of pounds out of pocket.
Drivers opting for the most polluting petrol and diesel cars saw costs rise to a staggering £5,490 for the first year of registration.
Motoring expert Pete Barden has now suggested how these rates could rise further as they increase in line with inflation from April 1, 2026.
The most polluting band for new vehicles, which applies to vehicles that emit more than 255g/km, could see costs rise from £5,490 to £5,690.
Other motorists will see a significant increase, while zero emission vehicles are expected to retain the £10 first year tax rate.
Expected first year car tax rates from April 1, 2026
0g/km – Remains at £10
1-50g/km – Rising from £110 to £115
51-75g/km – Rising from £130 to £135
76-90g/km – Rising from £270 to £280
91-100g/km – Rising from £350 to £365
101-110g/km – Rising from £390 to £405
111-130g/km – Rising from £440 to £455
131-150g/km – Rising from £540 to £560
151-170g/km – Rising from £1,360 to £1,410
171-190g/km – Rising from £2,190 to £2,270
191-225g/km – Rising from £3,300 to £3,420
226-255g/km – Rising from £4,680 to £4,850
Over 255gkm – Rising from £5,490 to £5,690
