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Seemingly, older autos are now subject to new rates.
It seems to me that consumers are opting to purchase 2005 models because the higher taxes apply to vehicles registered after March 2006.
Everything appears to have been pushed back to March of 2001... A 2003 SL55 would cost £735 currently, while a 2005 E55 may cost the same, up from £435 a year ago...
Now that an R129 280, which was registered in 2001, is in the £735 band, it is likely to annoy several owners.
You’re only seeing the surface.
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V149, the new vehicle tax rates for 2026...
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LiamTheGreat
- Posts: 79
- Joined: Mon Feb 02, 2026 8:35 pm
Even if it doesn't mean the collectible performance cars will go to scrappers, I still expect that to happen.
Does it mean it for sure?
Does it mean it for sure?
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samjonescars
- Posts: 31
- Joined: Mon Feb 02, 2026 8:36 pm
Might you perhaps include the name of the source you used?
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GURU4U2BUY
- Posts: 38
- Joined: Mon Feb 02, 2026 8:40 pm
Tell me again. Over the weekend, I saw this in the Telegraph; I copied it and attempted to fill in the spaces where the photographs should have been, but I'm not sure the connection would work.
Vehicle Excise Duty (VED) costs are so high because of an antiquated environmental policy, which causes many perfectly usable and even desirable vehicles to be discarded.
Research conducted by the RAC Foundation indicates that the average age of British automobiles is approaching ten years, which is the oldest it has ever been. Drivers are choosing to hold on to their automobiles instead of purchasing new ones, due to increasing pricing and unwelcome technology.
However, because to an antiquated environmental policy, it is now too expensive to tax some of the most attractive and practical vehicles from the past two decades, rendering them practically useless and leading to their scrapping. This is not due to wear and tear, accidents, or corrosion, but rather to the fact that these vehicles are considered to be over 20 years old.
Based on the feedback they've received, Telegraph readers clearly share the aversion to modern cars' perceived over-simplification and favour older, simpler models (many of which are still going strong) that are up to 20 years old.
Cars with CO2 emissions of more than 225 g/km were subject to a steep increase in Vehicle Excise Duty (VED), sometimes known as road tax, after the controversial regulations were imposed in April 2006. Despite its intention to punish 'gas guzzlers', it ended up taking many modest 4x4s that are appreciated or even essential for people living in the country or on caravan trips, as well as the larger automobiles needed by large families.
For the vast majority of vehicles manufactured before 2001, the engine capacity is the only determinant of tax bracket. There is an annual tax of £229 for anything with a displacement of less than 1,549cc, and a yearly tax of £360 for everything with a displacement greater than this, be it a Lada or a Lamborghini.
Following this, the various emissions level bands went into effect, with the exception of vehicles registered between March 2001 and March 23, 2006, which were limited to paying the highest rate of £430 (Band K).
VAT cap removed
That's not cheap, but it's much more affordable compared to the expense that owners of cars registered after this date will face, which has emissions exceeding 225 g/km. That's because the bands have been extended to L and M, with an annual cost of £735 and £760 respectively, due to the relocation of the top limit.
Taxing a band M vehicle will cost you £798 per year if you can't pay all at once. Paying every six months is the priciest option, adding £418 to the total and bringing the annual cost to £836.
That will put off a lot of potential customers. When trying to tax an item that seemed like a good deal at first, some people get caught because they don't know how much it will cost to keep it on the road.
According to experts, this is driving down the value of some models to the point where they are either trashed or sent to countries that are eager to buy these bargain automobiles, some of which are almost classics.
Sportier vehicles like the Audi TT 1.8 and Vauxhall Zafira VXR, as well as more commonplace ones like larger-engined Ford Mondeos and Volkswagen Golfs, are subject to stricter regulations, which may come as a shock to owners of more expensive supercars and 4x4s with V8 engines.
A Land Rover Freelander or Subaru Forester may seem like the ideal and more cost-effective choice for drivers seeking all-wheel drive. However, it's important to note that some models still fall into the highest tax categories and may end up costing over £800 per year.
"Almost impossible to sell"
The Kent-based dealership Stone Cold Classics, managed by Wayne Lamport, specialises in vehicles from this time period. He warns that investors should use extreme caution when purchasing stocks issued in 2006 or later. Fantastic cars like the Jaguar X-Type aren't for everyone if the yearly tax is over £700. The car's worth is quickly depleted within a short period of ownership.
"The Chrysler PT Cruiser is one model that fits this description. When people see how much money it will cost to tax them each year, they quickly lose interest, even though they adore them and believe they'll be cool. "Many of these vehicles are hardly marketable," he says.
The VED fee significantly affects values, however there are more desired models that will still find buyers despite the additional expense. While high-performance vehicles like the Volkswagen Golf R32 and Alfa Romeo V6 are in high demand, according to Lamport, a 2005 vehicle is worth significantly more than a 2006 one. The only difference between the two cars is the registration date, which sounds ridiculous considering that a newer vehicle may cost you an extra thousand pounds over three years and be worth less when you decide to sell it.
Vehicles that are impacted
Because of this, you can find some vehicles at incredibly low prices. Among the classified ads I perused was an ad for a Mercedes CL500 that had its initial owner pay almost £75,000 and was registered on March 31, 2006. It barely made £1,050 at the sale, even though the mileage was below normal. The reduced VED would have allowed it to fetch at least twice as much had it been registered just one week earlier.
What about a lovely Saab convertible for spring? It appears to be a steal for £1,500 from a dealer and shouldn't have too high of running costs thanks to its 2.0-liter petrol engine. If you pay your taxes monthly, though, you'll end up spending more than half of that each year. When owners are confronted with a combined MOT and tax payment, along with a few other running fees, it's no wonder that many will just junk the automobile.
The proprietor of Gloucestershire's independent specialist Gloucester Land Rover, Russ Knight, has witnessed firsthand the impact of taxes on his clientele. "People will come in for services and MOTs, and we might suggest a few things they need done," he explains. After adding the estimated tax expense to the total, they determine it's not worth it to proceed. "Keep the car," they simply say. These are practical 4x4s for families, so it's incredible. Some I restore and resell, while others are dismantled for their parts or sent to Africa. Ukraine is also receiving a large number of 4x4s.
It is criminal to dispose of good automobiles like these, Lamport adds. Although these vehicles are nearly 20 years old, they are still in widespread usage because they are dependable, comfortable, and easy to repair. However, perfectly good cars are being discarded due to a government policy that was intended to improve the environment twenty years ago. Surely, something has to change.
A guide to evading the tax doubling deadline
On or after March 23, 2006, the most costly bands L and M were added to the vehicle registration system. Cars having a 55-registration plate or earlier, as well as some very early 06-registration vehicles, will be perfectly OK according to this rule.
Cars with treasured (personalised) registrations could give the impression that they are older than they actually are.
The V5 registration paperwork should be consulted in cases of uncertainty. You can compare this number with the official CO₂ emissions statistic on the government website to get a better idea of the true yearly expense.
Vehicle Excise Duty (VED) costs are so high because of an antiquated environmental policy, which causes many perfectly usable and even desirable vehicles to be discarded.
Research conducted by the RAC Foundation indicates that the average age of British automobiles is approaching ten years, which is the oldest it has ever been. Drivers are choosing to hold on to their automobiles instead of purchasing new ones, due to increasing pricing and unwelcome technology.
However, because to an antiquated environmental policy, it is now too expensive to tax some of the most attractive and practical vehicles from the past two decades, rendering them practically useless and leading to their scrapping. This is not due to wear and tear, accidents, or corrosion, but rather to the fact that these vehicles are considered to be over 20 years old.
Based on the feedback they've received, Telegraph readers clearly share the aversion to modern cars' perceived over-simplification and favour older, simpler models (many of which are still going strong) that are up to 20 years old.
Cars with CO2 emissions of more than 225 g/km were subject to a steep increase in Vehicle Excise Duty (VED), sometimes known as road tax, after the controversial regulations were imposed in April 2006. Despite its intention to punish 'gas guzzlers', it ended up taking many modest 4x4s that are appreciated or even essential for people living in the country or on caravan trips, as well as the larger automobiles needed by large families.
For the vast majority of vehicles manufactured before 2001, the engine capacity is the only determinant of tax bracket. There is an annual tax of £229 for anything with a displacement of less than 1,549cc, and a yearly tax of £360 for everything with a displacement greater than this, be it a Lada or a Lamborghini.
Following this, the various emissions level bands went into effect, with the exception of vehicles registered between March 2001 and March 23, 2006, which were limited to paying the highest rate of £430 (Band K).
VAT cap removed
That's not cheap, but it's much more affordable compared to the expense that owners of cars registered after this date will face, which has emissions exceeding 225 g/km. That's because the bands have been extended to L and M, with an annual cost of £735 and £760 respectively, due to the relocation of the top limit.
Taxing a band M vehicle will cost you £798 per year if you can't pay all at once. Paying every six months is the priciest option, adding £418 to the total and bringing the annual cost to £836.
That will put off a lot of potential customers. When trying to tax an item that seemed like a good deal at first, some people get caught because they don't know how much it will cost to keep it on the road.
According to experts, this is driving down the value of some models to the point where they are either trashed or sent to countries that are eager to buy these bargain automobiles, some of which are almost classics.
Sportier vehicles like the Audi TT 1.8 and Vauxhall Zafira VXR, as well as more commonplace ones like larger-engined Ford Mondeos and Volkswagen Golfs, are subject to stricter regulations, which may come as a shock to owners of more expensive supercars and 4x4s with V8 engines.
A Land Rover Freelander or Subaru Forester may seem like the ideal and more cost-effective choice for drivers seeking all-wheel drive. However, it's important to note that some models still fall into the highest tax categories and may end up costing over £800 per year.
"Almost impossible to sell"
The Kent-based dealership Stone Cold Classics, managed by Wayne Lamport, specialises in vehicles from this time period. He warns that investors should use extreme caution when purchasing stocks issued in 2006 or later. Fantastic cars like the Jaguar X-Type aren't for everyone if the yearly tax is over £700. The car's worth is quickly depleted within a short period of ownership.
"The Chrysler PT Cruiser is one model that fits this description. When people see how much money it will cost to tax them each year, they quickly lose interest, even though they adore them and believe they'll be cool. "Many of these vehicles are hardly marketable," he says.
The VED fee significantly affects values, however there are more desired models that will still find buyers despite the additional expense. While high-performance vehicles like the Volkswagen Golf R32 and Alfa Romeo V6 are in high demand, according to Lamport, a 2005 vehicle is worth significantly more than a 2006 one. The only difference between the two cars is the registration date, which sounds ridiculous considering that a newer vehicle may cost you an extra thousand pounds over three years and be worth less when you decide to sell it.
Vehicles that are impacted
Because of this, you can find some vehicles at incredibly low prices. Among the classified ads I perused was an ad for a Mercedes CL500 that had its initial owner pay almost £75,000 and was registered on March 31, 2006. It barely made £1,050 at the sale, even though the mileage was below normal. The reduced VED would have allowed it to fetch at least twice as much had it been registered just one week earlier.
What about a lovely Saab convertible for spring? It appears to be a steal for £1,500 from a dealer and shouldn't have too high of running costs thanks to its 2.0-liter petrol engine. If you pay your taxes monthly, though, you'll end up spending more than half of that each year. When owners are confronted with a combined MOT and tax payment, along with a few other running fees, it's no wonder that many will just junk the automobile.
The proprietor of Gloucestershire's independent specialist Gloucester Land Rover, Russ Knight, has witnessed firsthand the impact of taxes on his clientele. "People will come in for services and MOTs, and we might suggest a few things they need done," he explains. After adding the estimated tax expense to the total, they determine it's not worth it to proceed. "Keep the car," they simply say. These are practical 4x4s for families, so it's incredible. Some I restore and resell, while others are dismantled for their parts or sent to Africa. Ukraine is also receiving a large number of 4x4s.
It is criminal to dispose of good automobiles like these, Lamport adds. Although these vehicles are nearly 20 years old, they are still in widespread usage because they are dependable, comfortable, and easy to repair. However, perfectly good cars are being discarded due to a government policy that was intended to improve the environment twenty years ago. Surely, something has to change.
A guide to evading the tax doubling deadline
On or after March 23, 2006, the most costly bands L and M were added to the vehicle registration system. Cars having a 55-registration plate or earlier, as well as some very early 06-registration vehicles, will be perfectly OK according to this rule.
Cars with treasured (personalised) registrations could give the impression that they are older than they actually are.
The V5 registration paperwork should be consulted in cases of uncertainty. You can compare this number with the official CO₂ emissions statistic on the government website to get a better idea of the true yearly expense.
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franchcars
- Posts: 41
- Joined: Mon Feb 02, 2026 8:38 pm
Several sources, including the one below, attest to this, however the government's VED pages don't appear to confirm it.
Budgeting for Vehicle Excise Duty (VED) in 2026: The RAC Drive breaks Down the Individual Bands
Budgeting for Vehicle Excise Duty (VED) in 2026: The RAC Drive breaks Down the Individual Bands
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franchcars
- Posts: 41
- Joined: Mon Feb 02, 2026 8:38 pm
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NEWCAR2025
- Posts: 17
- Joined: Mon Feb 02, 2026 8:33 pm
Changing the band "K" seems to be an option on the government's DVLA website when searching for road tax expenses (V149).
Despite my best efforts, I was unable to locate any updates to the status quo on the website. Could you kindly provide me with a link or a screenshot?
As seen in the graphic above, the capped rate for cars that released more than 225g/km of CO2 before to 23rd March 2006 was Band 'K'.
As seen in the graphic above, the capped rate for cars that released more than 225g/km of CO2 before to 23rd March 2006 was Band 'K'.
I was under the impression that the government website would place my 250g/km vehicle in the £730 tax range. When I first looked at the table, I assumed the price would be much more. However, when I noticed the writing underneath, it read: "Vehicles registered before to March 23, 2006, that produce more than 225 g/km are classified as Band K.
My E240 falls into band K and will cost me £445 when I next have to pay it in January 2027 because it was registered in 2004. Consequently, a 2003 SL55 will be unaffected.
My E240 falls into band K and will cost me £445 when I next have to pay it in January 2027 because it was registered in 2004. Consequently, a 2003 SL55 will be unaffected.