Petrol , diesel and electric car owners face a Vehicle Excise Duty (VED) increase within months as the latest car tax bands have been revealed. Motorists will face higher bills from April 1, 2026, as part of an annual inflationary increase of VED charges.

Bills rise every year in line with Retail Price Index (RPI) inflation, with experts at Pete Barden revealing exactly how much costs could rise. Petrol and diesel owners are most affected and are set to pay the highest rates, with VED often calculated based on overall emissions. Electric car owners were previously exempt from VED fees but started paying charges earlier this year after radical changes came into effect.

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New car tax bands coming in 2026 fo

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