The new VED rates will come into force from April 1, 2026 as drivers warned of new £425 supplement for an extra 5 years
The new VED rates will come into force from April 1, 2026 as drivers warned of new £425 supplement for an extra 5 years
From next month, car buyers could be hit with a £5,690 vehicle tax bill due to alterations in Vehicle Excise Duty (VED) rates. Popular brands such as Ford, BMW, Toyota and Mercedes will be subject to a £5,690 tax from 1 April, but there’s a simple trick to shave £1,000 off this amount.
A recent compilation of 53 vehicles that will incur the highest VED rate for the first year has been released – predicted to increase from £5,490 to £5,690. This top-tier charge applies to vehicles emitting more than 255g/km of CO2.
Chancellor Rachel Reeves confirmed this week in her spring statement that there would be no amendments to the VED plans, meaning they will proceed as scheduled.
Experts suggest that many models currently in Band M could actually fall into the lower Band L, thereby reducing the tax by £1,000. As these vehicles are only marginally over the limit, opting for a slightly lower specification when purchasing could prove beneficial.
The Government has decided to significantly increase first-year VED charges for petrol and diesel vehicles from April 2025 onwards. These substantial fees are paid by buyers of brand-new cars before reverting to the standard rate thereafter.
The tax liability for the first year is determined based on a vehicle’s carbon dioxide emissions. At present, electric vehicle (EV) drivers enjoy an exemption from VED, whilst cars emitting between 111g and 150g/km of CO2 are subject to a £220 charge.
Vehicles exceeding 255g/km face an even heftier first-year levy of £5,490, with this figure expected to climb further to £5,690 from April. Modifications introduced last April meant electric vehicle purchasers paid merely £10 for their first year’s VED, a figure which has recently remained static.
Purchasers opting for a vehicle in Band L – ranging from 226g/km to 255g/km – will instead pay £4,680, representing a saving of over £1,000 in the initial year. Motoring organisations such as the RAC recommend always verifying the official CO2 emissions figure for the particular trim and engine specification you’re considering – not simply the model designation.
Even amongst the same vehicle range, CO2 output can differ considerably between engine capacities and transmission choices.
The table below outlines the complete range of first-year VED charges coming into force from 1 April 2026, determined by CO2 emissions. Rates are applicable to petrol and diesel vehicles meeting RDE2 standards.
Vehicles with a list price exceeding £40,000 at initial registration incur an additional £425 annually (Expensive Car Supplement) for five years from the second licence. From 1 April 2026, the threshold for zero-emission vehicles rises to £50,000.
The complete list of 53 models verified by data specialists at AI SEO to fall within Band M (over 255g/km CO2), and consequently subject to the £5,690 first-year charge:
- Alfa Romeo: Stelvio 2.9 V6 Bi-Turbo
- Aston Martin: DB12 4.0 V8, DBX 4.0 V8, Vantage 4.0 V8
- Audi: R8 5.2 FSI V10, RS6 4.0 TFSI V8, RS7 4.0 TFSI V8, RSQ8 4.0 TFSI V8, S8 4.0 TFSI V8, SQ7 4.0 TFSI V8, SQ8 4.0 TFSI V8
- Bentley: Bentayga 4.0 V8, Continental 4.0 V8, Continental 6.0 W12, Flying Spur 4.0 V8
- BMW: Alpina XB7 4.4 V8, M8 4.4 V8, X5 M 4.4 V8, X6 M 4.4 V8, X7 M 4.4 V8
- Chevrolet: Corvette Stingray 6.2 V8
- Ferrari: Purosangue 6.5 V12, Roma 3.8T V8
- Ford: Mustang 5.0 V8
- INEOS: Grenadier 3.0P
- Jaguar: F-Pace 5.0 P575 V8
- Jeep: Wrangler 2.0 GME
- Lamborghini: Huracán 5.2 V10, Revuelto 6.5 V12, Urus 4.0 V8 BiTurbo
- Land Rover / Range Rover: Defender 90 5.0 P425 V8, Defender 110 5.0 P425 V8, Range Rover 4.4 P530 V8, Range Rover 4.4 P615 V8, Range Rover Sport 4.4P V8
- Lotus: Emira 3.5 V6
- Maserati: Levante 3.0 V6, Levante 3.8 V8, MC20 3.0 V6
- Mercedes-Benz: AMG GT 4.0 V8, G400D, G63, GLE63, GLC63, GLS63h, SL55
- Porsche: 718 Cayman 4.0 GT4, 911 3.7T 992 Turbo, Cayenne 4.0T V8, Macan 2.9T V6
- Rolls-Royce: Cullinan 6.75 V12, Ghost 6.75 V12
- Toyota: Land Cruiser 2.8D
Commercial vehicles: Ford Ranger (3.0 V6), Volkswagen Amarok (3.0 TDI), Toyota Hilux (2.8D)
In stark contrast, motorists with petrol, diesel and hybrid vehicles are preparing for a substantial hike as these charges are set to double. A Treasury spokesperson informed Car Dealer Magazine that purchasing new vehicles such as a Ford Puma could see the first-year VED cost surge from £220 to £440.
For premium models like a Range Rover, the initial year’s duty would soar from £2,745 to an eye-watering £5,490 – with a further increase to £5,690 anticipated.
“A difference of just a few grams of CO2 per kilometre can mean paying over a thousand pounds more in first-year tax,” said a spokesperson for AI SEO. “Buyers should check the exact emissions figure on any car they are considering before April, because dropping into Band L rather than the top band is one of the simplest savings available right now.”
To find precise CO2 levels, search using the complete model name plus ‘CO2 g/km’ or ‘WLTP emissions’ on GOV.UK or the manufacturer’s website. Manufacturer specification pages should display the exact figure for each variant.
Expected first year vehicle 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
Following the initial £5,690 payment in year one, drivers will continue to pay the “Expensive Car Supplement” from years 2 to 6. This adds £425 to the standard annual rate (approximately £200), resulting in a tax bill for the subsequent five years of roughly £625 per year.
From the second year onwards, the standard annual charge increases to £200 for all vehicles registered after April 2017, irrespective of emissions. This means the first-year payment represents the largest variable expense for new-car purchasers – and the one they have most control over when making their purchase.
The 40-year classic car tax rule remains unchanged. If your vehicle was manufactured more than four decades ago, you’ll still fall under the “historic vehicle” category and pay nothing in VED.
Likewise, road tax exemptions for disabled drivers remain unaffected. If you qualify, you’ll continue to be fully exempt from these increases.
