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Following the Chancellor’s recent announcement of a 12-month Vehicle Excise Duty (VED) holiday for heavy goods vehicles (HGVs), the Driver and Vehicle Licensing Agency (DVLA) has provided further information on how the holiday will operate.
The temporary £1 vehicle tax rate will be available for vehicles taxed between 1 July 2026 and 30 June 2027. Vehicles taxed before 1 July 2026 will be charged at the current rate, and no refunds will be issued.
The measure will apply to a range of vehicle tax classes, including HGVs (TC01), HGV trailers (TC02), small islands vehicles (TC16), combined transport vehicles (TC23) and special types vehicles (TC57).
If a vehicle is liable for the HGV levy, it will continue to be charged at the existing rate.
A revised V149/1 will be published, and an information page will be available on GOV.UK shortly.
The initiative is expected to provide support for HGV operators and their customers during the next 12 months.
The BVRLA will share further information with members when the official guidance becomes available.
