06/02/2026
We've seen a lot of confusion and misinformation about UK car tax over the last few days, particularly in Jaguar X-TYPE groups after a newspaper article printed at the weekend. And we felt it was time we cleared it up for the Jaguar community.
The article in question was looking at how values of post 2006 cars with high emissions - including X-TYPEs - were lower than those of 2005 and earlier cars, because of tbe crippling VED costs of cards in the then-new bands L and M. Because the cars affected by this jump are now reaching 20 years old, writers feel it's a subject worth exploring in print as many are achieving modern classic status.
This tax band jump is why I bought a 2004 XJ6 as a daily driver, rather than an X358 or XF for instance. I - and everybody whose highest-band emission cars were registered between March 2001 and 23 March 2006 - currently pay £430 per year for the privilege of using my car on the road. Those with cars registered after 23 March 2006 face a bill of £735 to do the same thing.
While both figures are set to increase in April, the banding for each car will stay the same. It's likely that the bands will rise by the RPI, which is currently 2.9%. This would mean owners of cars registered between March 2001 and March 2006 are likely to pay £445 from April, while owners of cars registered from March 2006 are likely to be told to stump up around £760. Obviously, less polluting models in lower bands pay less but the principle applies there too..
Owners of cars registered between 1986 and March 2001 currently pay £360, which is likely to rise to £370. If your car is over 40 years old and registered historic, your VED bill is £0.
In summary: if you are paying £430 for a year's tax at present, please do not be fooled by attention-grabbing headlines or clickbait features into thinking you will have to pay over £700 to tax the same car next year. Whatever price you are currently paying, you're unlikely to see a rise of more than £25.