Drivers Urged to Check V5C Logbook Before April VED Rate Rises
Motorists across the country are being strongly advised to review their V5C vehicle logbook before April 1, 2026, as Vehicle Excise Duty (VED) rates are set to increase for nearly all petrol, diesel, and electric vehicle owners. Experts warn that even minor inflation-linked adjustments could push high-pollution vehicles into significantly more expensive tax brackets, making the logbook a critical document for calculating future costs.
How to Determine Your New Tax Rate
To ascertain your updated tax rate, locate the CO2g/km figure on your V5C logbook. For vehicles registered between March 2001 and March 2017, this emissions reading is the sole factor used to determine which tax band the vehicle falls into. It is essential to verify this information to avoid unexpected financial burdens.
Major Price Hikes for High Polluters
The steepest increases will impact vehicles emitting over 255g/km of CO2, with annual bills rising from £760 to £790. Additionally, vehicles in the 226–255g/km bracket will face a substantial hike of approximately £25 per year. These changes highlight the government's focus on penalising high-emission vehicles to encourage greener alternatives.
Standard Rate Increase and EV Changes
For most cars registered on or after April 1, 2017, the standard annual flat rate is expected to increase from £195 to £200, following the Retail Price Index (RPI) adjustment. In a significant shift, all electric vehicle owners must now pay VED for the first time. EVs registered between April 2017 and March 2025 will pay the standard £200 annual rate, while older EVs (pre-2017) will move into a newly created Band B rate of £20 per year.
New EV "Showroom Tax" and Luxury Car Supplement
Brand new electric cars registered from April 2026 will incur a £10 first-year rate before transitioning to the standard £200 rate in their second year. Furthermore, the threshold for the "luxury car tax" (Expensive Car Supplement) is increasing to £50,000 for electric vehicles only. This means EVs priced between £40,000 and £50,000 will now avoid the £425 annual surcharge, whereas the threshold for petrol and diesel cars remains at £40,000.
Clean Air Zone and Historic Vehicle Information
Your logbook also contains the vehicle's Euro emission rating, typically found on page two under ‘Exhaust Emissions’. This rating is crucial for determining liability for daily charges in Clean Air Zones or London’s ULEZ. Additionally, the rolling 40-year exemption continues; from April 1, 2026, any vehicle built before January 1, 1986, will be exempt from paying VED, provided it is registered as a "historic vehicle" with the DVLA.
In summary, with VED rates on the rise, drivers must proactively check their V5C logbooks to understand their new tax obligations and avoid costly surprises. This move underscores broader efforts to promote environmental sustainability while adjusting fiscal policies in the transport sector.
