Petrol and diesel cars registered before 2017 are set to “pay more” under major changes to car tax bands this Spring, according to experts from the RAC. Vehicle Excise Duty (VED) fees are updated every year, with fees increasing in line with Retail Price Index (RPI) inflation.
Petrol, diesel and electric car owners will notice some rise, with cars registered before 2017 among the most affected. Cars built between 2001 and 2017 have their VED fees calculated based on total emissions, with more polluting cars paying more.
The RAC explained: “You may pay less or more if your car was first used before 2017. The exact fee for your annual road tax will boil down to the year your car was first registered, the type of fuel it uses and its tailpipe emissions.”
According to Pete Barden, the most polluting petrol and diesel cars in Band M, emitting over 255g/km of CO2, will pay £790 from April 1, up from the current £760 fee. Vehicles falling into Band L, producing between 226 and 255g/km of CO2, are also set to be hit with price hikes, as bills rise from £735 to £760.
VED fees will jump £15 for those in Bands I, J and K, with £10 increases for cars falling into car tax brackets F, G and H. Car tax prices jump just £5 for cars falling into Bands D and E, but there are no increases for lower polluting models.
Clean vehicles which produce under 120g/km of CO2 will not see fees rise at all, with costs for models in Bands A to C remaining the same as in 2025.
HM Revenue and Customs (HMRC) confirmed inflation rises would come into effect this Spring shortly after Labour’s Autumn Budget statement last November.
- A - Up to 100 - £20
- B - 101 to 110 - £20
- C - 111 to 120 - £35
- D - 121 to 130 - £170
- E - 131 to 140 - £200
- F - 141 to 150 - £225
- G - 151 to 165 - £275
- H - 166 to 175 - £325
- I - 176 to 185 - £360
- J - 186 to 200 - £410
- K - 201 to 225 - £445
- L - 226 to 255 - £760
- M - Over 255 - £790
