Under new regulations confirmed by Labour Party Chancellor Rachel Reeves, van owners are facing increased Vehicle Excise Duty (VED) charges to stay legally on UK roads. Starting April 1, 2026, vans registered after March 2001 will see fees rise, with some paying up to £360 annually.
Light goods vehicles (tax class 39) registered on or after March 1, 2001, will be required to pay £360 for 12 months or £198 for six months. Meanwhile, Euro 4 and Euro 5 compliant vans registered between 2003 and 2010 will continue to pay a reduced rate of £140 annually or £77 for six months.
The increase aligns with the government’s commitment to uprate VED in line with the Retail Price Index (RPI) for 2026-2027, as outlined in the Finance Bill 2025-26 following the 2025 Budget announcement.
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AutoTrader clarified that VED, commonly known as road tax, is essential for all van drivers. Unlike cars, van VED rates are generally simpler, with a flat rate applied depending on the vehicle’s tax class. Payments can be made either in full for six or twelve months or monthly instalments.
HM Treasury highlighted that most motorists will pay an annual VED of £140, with higher charges applying primarily to vehicles costing over £40,000. Importantly, no household will incur increased charges for vehicles they already own.
These changes ensure that VED rates keep pace with inflation, impacting van owners with newer vehicles most significantly while maintaining lower fees for certain compliant vans.