New car tax bands coming in 2026 for petrol and diesel owners

Petrol and diesel car owners will be hit with higher car tax charges from April 2026 under new updates to Vehicle Excise Duty (VED) bands. Analysis from Pete Barden has revealed almost all drivers will face increases next Spring as part of annual inflationary VED hikes.

Bills for the highest polluting models could rise by as much as £250 per year in a major blow for cash-strapped motorists. The experts have predicted that standard VED fees, first-year charges and Expensive Car Supplement rates are all expected to increase from April 1. VED rates rise each year based on Retail Price Index (RPI) inflation , which Pete Barden claims could be around 4.6%.

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