{"id":13318,"date":"2026-03-31T12:01:57","date_gmt":"2026-03-31T11:01:57","guid":{"rendered":"https:\/\/www.stoneacre.co.uk\/blog\/?p=13318"},"modified":"2026-03-31T12:04:42","modified_gmt":"2026-03-31T11:04:42","slug":"everything-you-need-to-know-about-car-tax","status":"publish","type":"post","link":"https:\/\/www.stoneacre.co.uk\/blog\/everything-you-need-to-know-about-car-tax","title":{"rendered":"2026 Car Tax Update: Everything You Need to Know"},"content":{"rendered":"\n

Some know it as road tax, while others rightly call it VED (Vehicle Excise Duty) but car tax is something that all drivers are affected by in some shape or form. Since its inception in the early 20th century, car tax has been collected by the Government, though this process has evolved over time as our automotive technology has also developed.<\/p>\n\n\n\n

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Let\u2019s get into the details of what car tax is and why it is we pay it\u2026<\/p>\n\n\n\n

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What is Car Tax?<\/span><\/a><\/td>What does Car Tax pay for?<\/span><\/a><\/td><\/tr>
What are the Car Tax changes from 202<\/span>6?<\/span><\/a><\/td>How much is Car Tax?<\/span><\/a><\/td><\/tr>
How much is Electric Car Tax?<\/span><\/a><\/td>How do I tax a car?<\/span><\/a><\/td><\/tr>
Where did the tax disc go?<\/span><\/a><\/td>Car Tax FAQs<\/span><\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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What is car tax?<\/strong><\/h2>\n\n\n\n

Car tax is more officially known as VED and was born out of a need to collect funds to look after our roads, as cars became more and more prevalent.<\/p>\n\n\n\n

Starting out as a direct way to cover the cost of both the maintenance and creation of our road systems, car tax exists today as a cost to motorists – in essence – as a tax on your vehicle.<\/p>\n\n\n\n

The term \u2018Vehicle Excise Duty\u2019 was established in 1936, and the system has evolved ever since, with the cost of car tax increasingly becoming a reflection of how efficient a vehicle is. As a result, regulations such as EU directives to have manufacturers build their cars with engines that meet certain standards have had a notable effect on car tax.<\/p>\n\n\n\n

Vehicle Excise Duty, being based on emissions, has been around since 2001, and the calculations around it have moved with such changes in technology. For instance, in 2001, average new car emissions were 178g\/km of CO2, but this figure has since dropped to circa 125g\/km.<\/p>\n\n\n\n

A balancing act of ensuring enough money is being brought into the government coffers, and the right kinds of cars paying certain amounts, is always at the forefront of what car tax is about, with updates happening every few years as a result.<\/p>\n\n\n\n

Car tax bands are also in place to reflect the effectiveness of creating strong signposting for environmental standards. However, electric cars used to be exempt, but this is no longer the case.<\/p>\n\n\n\n

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What does car tax pay for?<\/strong><\/h2>\n\n\n\n

While many might believe the opposite, VED doesn\u2019t go directly to local councils – or even the Department of Transport – in fact, it goes into the same pot of cash as your council tax and other such contributions.<\/p>\n\n\n\n

So, while the DoT doesn\u2019t get its funding directly from the public, the Government will allocate a yearly budget to the department for it to spend as required.<\/p>\n\n\n\n

Effectively, car tax is not a road tax, but more a tax on the vehicle itself. Whenever you see roads getting repaired, it is not car tax paying for this – the cost allowance for this maintenance is worked out with the rest of the budget for the local council as a whole.<\/p>\n\n\n\n

When it comes to the enhancement or creation of major road systems, meanwhile, the budget for this work comes out of the total budget handed to the Department of Transport by the Government.<\/p>\n<\/div><\/div>\n\n\n\n

What are the car tax changes from 2026?<\/strong><\/h2>\n\n\n\n

The rules still depend heavily on your vehicle’s emissions and when it was first registered.<\/p>\n\n\n\n