Drivers Issued £200 Warning Ahead of Major Car Tax Change on April 1
Motorists across the UK have been issued a stark warning as Vehicle Excise Duty (VED) bills are set to rise again in just two months time. Certain drivers could see as much as £200 added to their annual bills due to significant changes coming into effect from April 1, 2026.
Impact on Petrol, Diesel, and Electric Vehicles
This major car tax change will impact a wide range of drivers, including those with petrol, diesel, and electric vehicles. However, brand new, highly polluting petrol and diesel models are expected to face the steepest hikes. Owners of cars straight off the production line that emit over 255g/km of CO2 are set to pay exactly £200 more than current rates.
Substantial Increases in VED Rates
The VED bills have seen dramatic increases in recent years, rising from £2,745 per year to a staggering £5,490 in 2025. This upward trend continues with rates set to climb again to £5,690 from April 2026. Luxury car manufacturers including Bentley, Mercedes, and Rolls-Royce are among those hit with the highest fees under the new system.
Specific Models Affected by the Hike
Several popular models will face the substantial £200 increase, including the BMW M8, Ford Ranger, and Toyota Hilux. Additionally, cars emitting between 226 and 255g/km of fuel will pay £4,850 per year to use UK roads, representing a £170 increase from the current £4,680 fee.
Government Statement on VED Changes
Exchequer Secretary Dan Tomlinson provided official clarification on the upcoming changes, stating: "Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'vehicle tax', is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions."
He continued: "As announced by the government at Budget, from 1 April 2026, VED rates for cars, vans, motorcycles and heavy goods vehicles (HGVs) will be uprated in line with the Retail Price Index (RPI) in 2026-27."
Broader Context of Motoring Costs
This latest increase comes amid growing concerns about the overall cost of motoring in the United Kingdom. The government's decision to uprate VED in line with the Retail Price Index reflects ongoing efforts to adjust taxation in response to economic indicators while maintaining revenue streams for road maintenance and infrastructure projects.
The changes highlight the continued focus on emissions-based taxation, with higher-polluting vehicles bearing the brunt of the increases. Motorists are advised to check their specific vehicle's emissions rating and prepare for the financial impact of these changes taking effect in just over two months time.
