Motorists purchasing new vehicles face steep Vehicle Excise Duty (VED) charges, with some required to pay up to £4,850 starting in 2026/27. These updated first-year rates, effective from April 1, impact nearly all road users and particularly target owners of high-emission cars.

Highest Charges for New Vehicles

Owners of brand-new cars emitting 226 to 255 grams of CO2 per kilometer will pay £4,850 in the 2026/27 tax year. This marks a £170 increase from the previous £4,680 rate before April’s changes and exceeds £2,000 compared to the £2,340 charged during the 2024/25 tax year.

Vehicles exceeding 255g/km of CO2 face the steepest fees at £5,690 annually, up £200 from the prior £5,490.

Checking CO2 Emissions

Drivers can verify their vehicle’s CO2 output through the V5C logbook, the manufacturer’s website, or annual MOT test results, which provide emission levels at the time of inspection.

Annual Adjustments and Government Confirmation

VED rates adjust each spring based on Retail Price Index (RPI) inflation. HM Revenue and Customs (HMRC) has confirmed the 2026 increases, stating: “As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.”