Millions of UK motorists could see their vehicle tax bills change from 1 April 2027, after the Government confirmed a new uprating of Vehicle Excise Duty (VED).
The Government has announced that VED rates for cars, vans and motorcycles will increase in line with the Retail Prices Index (RPI) for the 2027/28 tax year.
This means drivers could pay more to tax their vehicles, although the exact increase will depend on the vehicle and its current tax band.
What Is The £375 Figure?
The £375 figure in the headline relates to an existing VED rate for certain older vehicles.
For cars and vans registered before 1 March 2001, the current 2026/27 rate for vehicles with an engine larger than 1,549cc is £375 a year. The lower engine-size category is £230.
So, motorists should not assume that everyone will suddenly receive a £375 car-tax bill from April 2027.
The actual VED rate depends on factors including the vehicle’s registration date, engine size and emissions.
Who Could Be Affected?
The April 2027 change is expected to affect a wide range of vehicle owners because the Government is uprating VED rates for cars, vans and motorcycles.
For newer cars, VED is generally linked to the vehicle’s CO2 emissions and registration rules. Current standard rates for cars registered from April 2017 are different depending on the vehicle category.
Electric vehicles are also no longer automatically exempt from vehicle tax under the current system.
Check Your Vehicle Before April
Drivers should check their vehicle’s current tax rate rather than relying on a single figure circulating online.
The Government’s latest announcement confirms that VED rates will be uprated from 1 April 2027, but the final amount payable will depend on the individual vehicle.
For anyone budgeting for motoring costs, checking the official vehicle-tax information closer to April could help avoid surprises.
The important point is that £375 is not a new flat-rate car tax for millions of drivers. It is one existing VED rate, while the wider April 2027 change involves an RPI-linked increase across vehicle-tax rates.