Motor Vehicles: Excise Duties

(asked on 21st October 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has considered introducing additional Vehicle Excise Duty charges for larger or heavier passenger vehicles.


Answered by
James Murray Portrait
James Murray
Financial Secretary to the Treasury and Paymaster General
This question was answered on 2nd November 2026

Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'car tax', is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, heavy goods vehicles and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.

There is currently a rolling 40-year exemption from VED for classic cars. Currently, vehicles constructed before 1 January 1986 are exempt from paying VED. From 1 April 2027 vehicles constructed before 1 January 1987 will become exempt from VED.

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