Vehicle Excise Duty Changes 2026
A new tax year signals a number of changes to legislation and rules around vehicle excise duty.
As the UK continues its journey toward cleaner and more sustainable mobility, several updates to Vehicle Excise Duty (VED) will take effect from April 2026. These changes affect both electric and internal combustion engine (ICE) vehicles, and we’re here to help you understand what’s changing and what it means for your next vehicle or fleet.
Vehicle Excise Duty (VED) — sometimes known as Road Tax or Road Fund Licence — is applied to vehicles based on their type and first registration date.
The 2026 updates are intended to support the transition toward lower‑emission driving while keeping the system consistent across different types of vehicles.
- Standard rate of VED
- In the first year of registration, electric cars will pay the lowest first year rate, currently £10.
- ICE and hybrid cars will pay a rate between £115 and £5,690, depending on their emissions, while vans will pay the standard rate, rising in April 2026 to £360.
- After that, the standard rate will be charged on the vehicle’s registration anniversary. This will rise to £200 for cars and £360 for vans for the tax year 2026/27, and this increases annually in line with inflation.
- Expensive Car Supplement
- From April 2026, the list price threshold for new electric cars to trigger the Expensive Car Supplement will rise from £40,000 to £50,000.
- The supplement is payable in years two to six and is in addition to the standard VED charge.
- In 2026/27 the supplement will rise to £440 per year (from £425).
- The threshold for ICE and hybrid vehicles remains at £40,000.
VED and Expensive car supplement at a glance
Vehicles registered after 1 April 2026
| Vehicle | VED first year | VED second year onwards | Expensive car supplement |
|---|---|---|---|
| Electric cars over £50k | £10 in year one | Uplift: Standard car rate (£200) | Uplift: £440 |
| Electric cars under £50k | £10 in year one | Uplift: Standard car rate (£200) | x |
| Electric vans | Uplift: Light goods vehicles (£360) | Uplift: Light goods vehicles (£360) | x |
| Hybrid, Petrol or Diesel cars under £40k | Uplift: £115 - £5,690 depending on emissions | Uplift: Standard car rate (£200) | x |
| Hybrid, Petrol or Diesel cars over £40k | Uplift: £115 - £5,690 depending on emissions | Uplift: Standard car rate (£200) | Uplift: £440 |
Where vehicles are quoted and ordered in 2026, if your vehicle is delivered after 1 April 2026 you will be charged the new tax rates.
- If delivery is before 1 April, we’ll either adjust your contract to reflect the 25/26 tax rates when we set it live or refund the difference.
If you quoted and ordered in 2025 your quote was based on 25/26 rates, meaning:
- If delivery is after 1 April, we’ll need to recharge the increased VED charge, including in the first year
- If delivery is before 1 April, you won’t need to do anything.
Vehicles already on the road
The following VED charges will be applicable in the 2026/27 tax year.
| Vehicle | Renewal VED | Expensive car supplement |
|---|---|---|
| Electric Vans | Uplift: Light goods vehicles (£360) | x |
| Fully electric cars under £50k | Uplift: Standard car rate (£200) | x |
| Fully electric cars over £50k | Uplift: Standard car rate (£200) | £440 |
| Hybrid, Petrol or Diesel cars under £40k | Uplift: Standard car rate (£200) | x |
| Hybrid, Petrol or Diesel cars over £40k | Uplift: Standard card rate (£200) | £440 |
| Hybrid, Petrol or Diesel vans | Euro4/5 van rate £140 or Light goods vehicles at £360 | x |
The detail
First year VED rates for cars in 2026/2027*
| Petrol, hybrid, electric, Euro 6d diesel | |||
|---|---|---|---|
| CO2 emissions (g/km) | Change (g/km) | April 2026 | Uplift |
| --- | --- | --- | --- |
| 0 | N/A | £10 | £0 |
| 1-50 | +£5 | £115 | £5 |
| 51-75 | +£5 | £135 | £5 |
| 76-90 | +£10 | £280 | £10 |
| 91-100 | +£15 | £365 | £15 |
| 101-110 | +£15 | £405 | £15 |
| 111-130 | +£15 | £455 | £15 |
| 131-150 | +£20 | £560 | £20 |
| 151-170 | +£50 | £1,410 | £50 |
| 171-190 | +£80 | £2,270 | £80 |
| 191-225 | +£120 | £3,420 | £120 |
| 226-255 | +£170 | £4,850 | £170 |
| Over 255 | +£200 | £5,690 | £200 |
*increases annually in line with inflation
First year VED rates for vans
- All new vans, including electric vans will pay £360 (increased by £15)
If you have any questions about how the new VED rates may affect your current or future vehicle choice, we’re here to help you navigate the changes with confidence.
