VED from April 2027: every car and van rate, and what fleets pay

Vehicle Excise Duty for cars, vans and motorcycles goes up with the Retail Prices Index from 1 April 2027. The government confirmed the uprating in the Budget on 28 October 2026, and HM Treasury's rates and allowances annex sets out every band for 2027 to 2028.

The standard rate for a car registered since April 2017 rises from £200 to £210 a year, and the rate most vans pay rises from £360 to £375. A zero-emission car still pays £10 in its first year, then the same £210 standard rate as a petrol or diesel car. The date, with calendar reminders, is in the fleet calendar.

Cars registered from 1 April 2017

A car registered since April 2017 pays a first-year rate set by its CO2 emissions, then a flat standard rate from its second year. From 1 April 2027 the standard rate is £210 for every band, including zero-emission cars. The first-year rates rise between £5 and £260, depending on the band.

The annex also restates two rules that sit on top of these rates. A new diesel car that does not meet the real driving emissions step 2 (RDE2) standard pays the first-year rate of the band above its own. And a petrol or diesel car with a list price over £40,000, or a zero-emission car with a list price over £50,000, pays the Expensive Car Supplement of £460 a year in its second to sixth years. With the £210 standard rate, that is £670 a year.

Cars registered 1 March 2001 to 31 March 2017

Older cars stay on the 13 bands set by CO2 emissions, with no separate first-year rate. Bands A to C do not change. The rest rise by between £10 and £35.

Band K also covers cars emitting over 225g/km that were registered before 23 March 2006.

Vans

A van registered on or after 1 March 2001 pays one of two rates. The main rate, which the annex lists as "all other vans", rises by £15, or about 4%. The lower rate for early Euro 4 and Euro 5 compliant vans and electric vans from before 2011 stays at £140.

The van rate has now risen two years running: £345 in 2025 to 2026, £360 in 2026 to 2027 and £375 from April 2027. The THRIVE van database has prices, ranges and payloads for the vans on sale.

Motorcycles and trade licences

Motor tricycles follow the motorcycle rates: £28 for those not over 150cc and £131 for all others.

What it costs a fleet

On the published rates, the rise is small per vehicle and adds up across a fleet. These are THRIVE's sums on HM Treasury's figures:

• A 100-van fleet on the main rate pays £37,500 a year from April 2027, against £36,000 in 2026 to 2027: £1,500 more.
• A 50-car fleet registered since April 2017, none over the Expensive Car Supplement threshold, pays £10,500 a year at the £210 standard rate, against £10,000: £500 more.
• A car over the threshold, petrol or diesel listed over £40,000 or zero emission listed over £50,000, pays £670 a year in years two to six.
• A new car in the 131 to 150g/km band pays a £585 first-year rate if it is first registered on or after 1 April 2027, against £560 before.

Because the first-year rate depends on the date of first registration, a new petrol, diesel or hybrid car registered in March 2027 pays the 2026 to 2027 first-year rate. The difference is £5 to £260, depending on the band. Company car benefit-in-kind is a separate tax, covered on the company car tax page.

HGVs are set separately

Most HGVs can still take out a 12-month VED licence at £1 until 30 June 2027, under the holiday the government introduced in July 2026 and the Budget kept. HGV VED and the HGV Levy have their own rate tables and dates: see HGV VED and the HGV Levy from April 2027 and when the £1 HGV VED window ends.

What comes next

The next change is a different tax. Electric Vehicle Excise Duty (eVED), a mileage-based charge for electric and plug-in hybrid cars, starts in April 2028, as announced at Budget 2025. HM Treasury's July 2026 consultation response set it at 3p a mile for battery-electric cars and 1.5p a mile for plug-in hybrids. Budget 2026 added a mileage estimation tool at launch, an opt-in "eVED Connect" system that uses a car's built-in connectivity so mileage does not have to be reported by hand, and further guidance for fleet operators. Vans are out of scope at introduction. The date and rates are on the eVED calendar page.

Also from 1 April 2027, eligible vehicles run by search and rescue charities are exempt from VED, under legislation in the Finance Bill.

For a reminder in Outlook, Google or Apple Calendar before the rates change, add the 1 April 2027 VED date from the fleet calendar.