Starting on April 1, people who buy new gasoline and diesel engines that release a lot of CO2 will have to pay a lot more in road tax in the first year. The most polluting vehicles will now cost up to £5,690 to register.
The increase mostly affects cars that emit more than 255g/km of CO2. However, the system is tiered, so the more a car emits, the more tax it pays.
The biggest jumps are in the top bands, which have roughly doubled in the last few years. Lower-emission motors see only small increases.
The fee only applies in the first year. After that, cars will pay the regular annual rate, which is expected to be around £200.
EV TAX SHAKE-UP
Starting in April 2026, EVs will be fully part of the standard VED system. This means that drivers will pay the standard annual rate of £200 for the first time, and this amount will go up with inflation after that.
There is some good news: the Expensive Car Supplement threshold has gone up from £40,000 to £50,000. This means that more mid-priced EVs won’t have to pay the extra £425 a year.
The EV Benefit-in-Kind tax for people who use company cars will go up from 3% to 4%. This will raise costs a little, but they will still be much lower than those for gasoline or diesel cars.
DRIVING TEST CRACKDOWN
Starting March 31, new rules for booking driving tests will go into effect.
Learners can only change their test booking twice, and they can change the date, time, or test center.
Anyone who needs to make more changes will have to cancel and rebook. However, if they cancel more than 10 working days in advance, they will get a full refund.
The change is meant to stop people from moving their bookings around or holding more than one slot, which has caused delays.
In many places, people have to wait about 22 to 24 weeks right now.
More changes are expected in the spring, such as limits on how far a test can be moved and plans to make sure that only the learner can handle their booking.
PAVEMENT PARKING CRACKDOWN
The plans would give local governments in England more power to deal with cars parked on sidewalks, which can make it hard for people to walk, use a wheelchair, or push a stroller.
The English Devolution and Community Empowerment Bill includes these measures. The House of Lords will look at them again between March 24 and April 13.
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