Overview
- The new Vehicle Excise Duty regime, which began Wednesday, sets a flat £200 annual rate for cars registered from 2017 and applies the same £200 in year one for new electric cars.
- The Department for Transport published a list of 59 petrol and diesel models over 255 g/km CO2 that now face a £5,690 first‑year bill, a ‘showroom tax’ based on emissions with higher bands for diesels that fail RDE2 standards.
- Rates for cars registered between 2001 and 2017 have been uprated, with the top CO2 bands now £760 for 226–255 g/km and £790 for over 255 g/km, which pushes many 20‑ to 39‑year‑old cars toward much higher annual costs.
- The Expensive Car Supplement has risen to £440 per year for years two to six on cars priced over £40,000, while zero‑emission models avoid the supplement up to a higher £50,000 threshold set for EVs registered since April 2025.
- Scrappage of older, high‑tax models is climbing, with Car.co.uk reporting sharp increases for vehicles like the VW Golf R32 and Land Rover Freelander as owners weigh bills that can rival the value of the car.