Measure
The government has announced a number of changes to vehicle excise duty rates for certain types of vehicles. This will include:
Uprating the rates for cars, vans and motorcycles in line with the Retail Prices Index (RPI) from 1 April 2026;
Uprating the rates for heavy goods vehicles (HGVs) and the HGV levy in line with RPI from 1 April 2026; and
Increasing the vehicle excise duty expensive car supplement threshold to £50,000 for zero-emission vehicles only, to take effect from 1 April 2026 and apply to zero emission vehicles registered from 1 April 2025 onwards.
Manufacturers, importers and business consumers of these types of vehicles.
These measures will be introduced from 1 April 2026.
The announcement of the uprate will result in additional excise duty payments being due for these vehicles. It follows previous vehicle excise duty Budget reforms that took effect in April 2025.