Van owners in the UK are facing a car tax charge of up to £360 in 2026 after Vehicle Excise Duty (VED) rates were increased across the board. The new fees, which took effect from April 2026, apply to petrol, diesel, and electric vehicles, with van drivers among those hit hardest. According to HM Revenue and Customs, the rise was implemented to keep car tax costs in line with inflation, as announced in the Autumn 2025 budget.
Van Tax Rates: Euro 4 and Euro 5 Vans Spared
Early Euro 4 and Euro 5 compliant vans registered after March 2001 will continue to pay £140, unchanged from 2025. However, all other vans will see a £15 increase, with annual fees rising from £345 to £360. Motorists opting to pay in two instalments will be charged £198 every six months. The increase is slightly larger than the £10 rise from £335 to £345 seen in 2025.
Legislation and Inflation Link
The new van costs were confirmed by HMRC shortly after Chancellor Rachel Reeves' Autumn budget in November 2025. HMRC stated: “As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from April 1, 2026.”
Legal Requirement and Exemptions
VED is a legal requirement for driving on UK roads, meaning motorists must pay the charge to retain their driving privileges. Only historic vehicles or cars used by disabled individuals can secure exemptions from the annual charge. AutoTrader explained: “Vehicle Excise Duty (VED), sometimes referred to as road tax, is a legal requirement for driving any van or vehicle on the UK’s roads. VED payable differs for cars and vans. The good news is that working out your VED is usually simpler for vans – van owners pay a flat rate set out by the DVLA. You can either make a single payment for the next six or 12 months, or you can pay in instalments each month.”
