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Written question asked by Tristan Osborne (Labour) on Tuesday, 21 April 2026, in the House of Commons. It was due for an answer on Thursday, 23 April 2026. It was answered by Dan Tomlinson (Labour) on Tuesday, 28 April 2026 on behalf of the Treasury.

Motor Vehicles: Excise Duties

Question

To ask the Chancellor of the Exchequer, whether her Department has made a recent comparative assessment of the adequacy of Vehicle Excise Duty treatment for (a) motorcycles and (b) cars; and if she will review the basis on which motorcycles are taxed.

Answer

VED, sometimes known as 'road tax' or 'car tax', is a tax on vehicles used or kept on public roads. Different VED rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions. Revenue from motoring taxes helps to fund vital public services and infrastructure, including investment in roads and transport.

VED for motorcycles is currently based on engine size. There are four engine size ranges, with the lowest rate applying to zero emission motorcycles and the smallest engines sized 150cc or less (currently £27). The highest rate applies to engines sized 600cc and above (currently £125). This compares with the standard rate for cars registered on or after 1 April 2017 which is currently £200. Motorcycles also do not pay different rates in the first year of purchase, unlike cars where first year rates vary from £10 to £5,690 for the most polluting vehicles.

The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.

Secondary information

Type
Written question
Reference
129006
Session
2024-26
Subjects
Cars Excise duties Motorcycles Standards
Link
View this Written question on www.parliament.uk