Overview
- DVLA and HMRC say new Vehicle Excise Duty rules take effect Wednesday, April 1, 2026, raising the standard annual bill for most post‑2017 cars to £200.
- First‑year charges for new petrol and diesel cars rise across CO2 bands, with the highest tier over 255g/km set at £5,690 and zero‑emission models held at £10.
- The Expensive Car Supplement increases to £440 a year for five years from year two, taking annual VED on cars above the price threshold to about £640.
- For electric cars, the threshold moves to £50,000 for vehicles first registered from April 1, 2025, so many mid‑priced EVs avoid the charge under licences that start on or after April 1, 2026.
- A separate pay‑per‑mile duty for EVs from April 2028 is planned at 3p per mile, and fleet groups are urging the government to delay and simplify the scheme.