2. Buying / selling a second hand car – Vehicle Tax and SORN.
Vehicle Tax & SORN in 2026
Whether you drive a petrol, diesel, or electric vehicle, staying on top of your road tax (VED) is essential to avoid automatic fines and potential vehicle clamping.
Renew your vehicle tax2026 Tax Rates: My Quick Reference
Since the rules changed in 2025, even electric vehicles are now part of the standard annual tax bill. Here is how I budget for my own vehicles:
| Vehicle Type | Standard Annual Rate |
|---|---|
| Petrol & Diesel (Post-2017) | £195 |
| Electric Vehicles (EVs) | £195 |
| Alternative Fuel (Hybrids) | £195 |
Smart Thinking: The Pre-2017 4x4 Trap
I often get asked about older vehicles. For instance, I looked into the rates for a 3-litre petrol 4x4 vehicle registered around 2005:
- Tax Band: Band K
- Standard 12-month rate: £430.00
The "K" Factor: I’ve spoken to owners of older SUVs who were pleasantly surprised they weren't in the top Band M (£760). This is because those higher rates only kicked in for cars registered after March 2006.
Smart Thinking: My Guide to New EV Tax Rules
- New EVs (From April 2025): £10 first year, then £195.
- Existing EVs (2017–2025): Full £195 standard rate.
- Older EVs (Pre-2017): Special rate of £20 per year.
💡 Luxury Tax Update: From 1 April 2026, the 'Expensive Car' threshold for EVs rises to £50,000.
Buying or Selling? The Transfer Rule
Tax is cancelled the moment the vehicle changes hands. Sellers get a refund; Buyers must tax the car immediately before driving.
Smart Thinking: Taking a Car Off the Road (SORN)
Keep the car on private land (garage/driveway). It cannot be on a public road. SORN stays valid until you tax, sell, or scrap the car.
Make a SORN online