CAR TAX WARNING: The 2026 "Showroom Tax" Shock

If you’re a fan of high-performance engineering, you might want to sit down for this. We’ve all seen prices rising, but the latest VED (Vehicle Excise Duty) figures are enough to make even a seasoned petrolhead wince.

We recently had a Porsche Cayenne Diesel in the workshop. For a slightly older model, the annual tax is a manageable £395. But here’s the kicker: if you were to register that same vehicle new today (under the 2025/26 rates), you’d be looking at a staggering £3,300 first-year "Showroom Tax." 💸

And that’s just the current 2025 figure. The official 2026 rates are still under wraps until the Spring Budget.

What we know so far for April 2026:

The government has already signaled that the "noose" is tightening on everything from thirsty V8s to brand-new EVs.

• The £200 Standard Rate: For cars registered after April 2017, the flat annual rate is expected to climb from £195 to at least £200 (indexed to inflation).

• The EV "Free Ride" is Over: If you’re switching to electric to "save" on tax, think again. From April 2025, EVs have been paying a £10 first-year rate and the standard annual fee thereafter.

• The Luxury Surcharge: The "Expensive Car Supplement" for vehicles over £40,000 is rising to £440/year. However, there is a small win: the threshold for EVs is expected to rise to £50,000 this April—a rare bit of good news if you’re eyeing a premium electric SUV.

• Showroom Tax Hikes: For high-emission cars (255g/km+), that first-year payment is predicted to smash past the £5,600 mark.

The Spring Budget Factor 📅

The Chancellor is expected to finalize these figures in the coming weeks. Traditionally, these rates rise with the Retail Price Index (RPI), meaning the numbers you see above could climb even higher before April 1st.

The Dave Chapman Advice: If you’re planning a new car purchase or a "26-plate" upgrade, do it before April. Locking in the current 2025 rates could save you hundreds—or in the case of a Cayenne or an X5—thousands of pounds in upfront costs.

Whether you're driving a modern classic or a brand-new beast, we’re here to help you keep it running efficiently (and hopefully keep those emissions—and tax bands—as low as possible!).