If you’ve recently received a VED renewal notice from the DVLA, you might have noticed the numbers aren't quite what they used to be. As of 1st April 2026, UK car tax rates are shifting again.

Whether you’re a long-term petrol head or you've recently made the jump to electric, the cost of staying on the road is changing. Here is a clear breakdown of what you’ll be paying and—more importantly—how to protect your car’s value in a changing market.

1. The "Inflation Squeeze" on Standard Rates

For the majority of UK drivers—those with cars registered after April 2017—the annual "Standard Rate" is seeing an inflation-linked increase.

• The Change: Most petrol, diesel, and hybrid drivers will see their annual bill rise from £195 to £200.

• Why? This is tied to the Retail Price Index (RPI). While a £5 jump might seem small, it’s a reminder that the cost of motoring is only heading in one direction.

2. The New Reality for Electric Vehicles (EVs)

The days of "Free Road Tax" for EVs are officially over. 2026 is the first full year where owners of electric and low-emission cars are integrated into the standard VED system.

• Modern EVs (Registered after 2017): You will now pay the same £200 standard rate as petrol and diesel cars.

• Brand New EVs: If you register a brand-new electric car after April 1st, you’ll pay a symbolic £10 for the first year, before moving to the £200 rate.

3. A Win for "Luxury" EV Buyers

There is one piece of genuine good news. The Expensive Car Supplement (the "Luxury Tax" applied to cars with a list price over £40,000) has been adjusted to encourage electric adoption.

• The New EV Threshold: For electric cars, this limit has been raised to £50,000.

• The Petrol/Diesel Reality: If you drive a combustion engine car that cost more than £40,000 new, you are still liable for the extra £425 per year surcharge for the first five years.

4. Don't Let Tax Hikes Drain Your Resale Value

With tax rates rising, many UK drivers are considering a move this spring—either downsizing to a more efficient model or finally making the jump to electric.

If you’re planning to sell or part-exchange your car to get ahead of these costs, remember: A full service history is worth its weight in gold.

In the current UK market, a vehicle with a "Full Service History" (FSH) can fetch 15% to 25% more than a car with missing stamps. On a car worth £10,000, that’s a £2,000 difference just for having your paperwork in order. Buyers and dealers aren't just looking at the bodywork; they’re looking for proof that the car has been maintained by professionals.

Maximize Your Value with Brooklands Auto Centre

A "Service Due" light on your dashboard is the fastest way to lose money during a valuation. Let us help you get your car "showroom ready."

Whether you need a fresh stamp in the book to maximize your sale price, or a health check to ensure your current car is running as efficiently as possible to offset the tax hike, we’re here to help.

Book online: Brooklands Auto Centre – Book Online

Call: 01952 256403

Visit us: Brooklands Auto Centre, Bagley Drive, Wellington, Telford, TF1 3NP