Vehicle Excise Duty Tax Rises April 2026

Posted on 10th Apr 2026 by CarTakeBack Posted in: Latest News

Vehicle Excise Duty (VED) tax rises have hit national headlines as popular car models have been described as ‘on the scrap watch-list’ due to the fees for owning them now exceeding the cars’ value!

We’ve taken a look at the real increases you may face and the car models most affected…

VED new increases explained

VED changes on April 1st include several increases for older vehicles based on their registration date and emissions.

Vehicles registered between March 2001 and March 2017 have seen their emission-based banding increased from £5 up to a huge £40.

 

New VED rates from 1st April 2026 for vehicles registered between March 2001 and March 2017

Tip: you can move this table side to side on mobile devices if required.

CO2 BandCurrent VED Rate (2025/26)New VED Rate (from April 2026)
BAND D 121–130g/km£165£170
BAND G 151–165g/km£265£275
BAND L 226–255g/km£735£760
BAND M Over 255g/km£750£790

If you wish to check your car’s emissions we have an article to guide you through the government’s online tools.

Vehicles Registered Before March 2001 are also subject to these inflationary increases, but their tax rate is based on engine size (cc) rather than CO2 emissions.

New VED rates from 1st April 2026 for vehicles registered before March 2001

Tip: you can move this table side to side on mobile devices if required.

Engine sizeCurrent VED Rate (2025/26)New VED Rate (from April 2026)
1549cc or less£220£230
Over 1549cc£360£375

Note to owners of vehicles older than 40 years

‘Historic cars’ exemption – Unless it’s used for commercial purposes, if your vehicle was manufactured before 1986, it will now be covered by Historic Vehicle Exemption and will be tax-exempt! However, you still have to apply for the exemption even if no payment is due. You can apply for your vehicle’s ‘historic’ status and tax exemption online.

Old but immaculate Mercedes with bonnet up in a car garage

Additional charges for Londoners

A well as the national VED tax, and the standard ULEZ charge (£12.50 daily to drive within Greater London), older vehicles in London face additional costs:
Congestion Charges have increased from £15 to £18 per day (starting 2nd Jan 2026)

 

Which car owners are going to be affected?

Car brands with popular models in high-tax Bands – Bands L and M, as seen in the first table – include huge names such as Ford, VW and Vauxhall.

The most scrapped car is currently a 17 year old Ford Focus (due to the fact it was the most popular car model 17 years ago!) but following these car tax hikes, we may see the most scrapped cars starting to change…

The following popular car models with larger engines, registered between March 2001 and March 2017, are now said to be in a ‘tax trap’ where the annual cost of VED may exceed their market value:

Ford: Mondeo 3L / Galaxy 2.3L, 2.8L petrol / Focus RS, ST / Kuga 2.5L petrol
Volkswagen: Golf R32 / Passat R32 / Touareg V6,V8,V10,W12 / Phaeton V6,V8,W12
Vauxhall: Insignia VXR 2.8L Turbo / Zafira VXR 2L Turbo / Astra VXR 2L Turbo / Vectra VXR 2.8L Turbo
Land Rover: Range Rover (full size) / Range Rover Sport / Discovery 3 and 4 / Defender
Audi: RS4 / RS6 / R8 / S8 / large Q7 and Q5s / A8 and A9s 4.2L and above
BMW: M / M3 / M5 / X5 / X6 / 3 Series – 330i and higher / most 5 Series / most 6 Series / most 7 Series
Jaguar: X-Type (2.0L Auto and larger), S-Type 4.2 V8
Others: Saab 900/ Subaru Forester 2.5 XT / Chrysler PT Cruiser / Mercedes Benz AMG models / Porsche Cayenne

As national media is now speculating, it’s likely that many car owners with the older models listed above, are weighing up whether these additional costs are worth it when the car they are paying for isn’t worth the tax being paid out. Undoubtedly, even if owners decide to fork out for the tax, if their car fails its MOT during 2026 and the bill to fix it costs more than its worth, it’s likely to be a cost too much.

Scrap cars at an Authorised Treatment Facility

Average scrap prices of the most popular cars affected

If you own one of the more popular models of these most affected cars, we thought it would be useful to see the current average scrap prices. Obviously there are many factors affecting these values, including your location, the condition of your vehicle, as well as the huge variables affecting the world metal markets. So, it’s always a good idea to get a quote for your specific car – there is an easy, instant quote option at the bottom of the page.

Photos of Ford logo, Volkswagen logo and Vauxhall logo from old cars

Ford models registered between March 2001 and March 2017 impacted by tax rises

Mondeo 3L / Galaxy 2.3L, 2.8L petrol / Focus RS, ST / Kuga 2.5L petrol

Tip: you can move this table side to side on mobile devices if required.

Ford ModelAverage Scrap Price
Mondeo£244
Focus£321
Galaxy£267
Kuga£328

Volkswagen models registered between March 2001 and March 2017 impacted by tax rises

Golf R32 / Passat R32 / Touareg V6,V8,V10,W12 / Phaeton V6,V8,W12

Tip: you can move this table side to side on mobile devices if required.

Volkswagen ModelAverage Scrap Price
Golf£253
Passat£315
Touareg£496
Phaeton£322

Vauxhall models registered between March 2001 and March 2017 impacted by tax rises

Insignia VXR 2.8L Turbo / Zafira VXR 2L Turbo / Astra VXR 2L Turbo / Vectra VXR 2.8L Turbo

Tip: you can move this table side to side on mobile devices if required.

Vauxhall ModelAverage Scrap Price
Insignia£283
Zafira£248
Astra£195
Vectra£212

It will be interesting to see if the most scrapped car models change significantly over the next year as these VED increases impact car owners.

If you do decide to scrap your old car, be sure to recycle it with an Authorised Treatment Facility and get a Certificate of Destruction.

Do VED tax rises mean your car is worth less than the tax bill?

Scrap car values can vary due to many factors – see what your old car is worth with an instant quote…

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