Road Tax for Most UK Lorries Temporarily Reduced to £1

29 July 2026 | DARY-SEB Logistics LTD

The UK Government has introduced an important temporary reduction in Vehicle Excise Duty, known as VED, for most heavy goods vehicles operating in the United Kingdom.

From 1 July 2026, most eligible lorries renewing their road tax will pay a symbolic charge of only £1 for a 12-month period. The measure applies to eligible vehicles taxed or renewed between 1 July 2026 and 30 June 2027.

Which vehicles are eligible?

According to information published by the Driver and Vehicle Licensing Agency, known as the DVLA, the reduction applies to most vehicles registered under the following taxation classes:

• HGV – taxation class 1;
• Trailer HGV – taxation class 2;
• Combined Transport – taxation class 23;
• Small Island – taxation class 16;
• Special Types – taxation class 57.

The vehicle’s taxation class can be checked on the V5C registration certificate or, for fleet operators registered with the DVLA, through the available online services.

The reduction should be applied automatically when an eligible vehicle is taxed. Even if the renewal reminder received by the operator shows the previous amount, the DVLA system should apply the correct charge when the payment is completed.

No refunds for tax paid before 1 July 2026

Operators who taxed their vehicles before 1 July 2026 will not receive a refund for the difference. The £1 rate can be used at the next renewal, provided the renewal takes place during the period in which the measure remains active.

The VED reduction also does not automatically remove the separate HGV Levy. Where this levy applies, it will continue to be calculated at the applicable rate and added when the vehicle tax is renewed.

Why was this measure introduced?

The UK Government stated that this temporary tax relief recognises the essential role of the road transport sector in supporting the economy and the disproportionate pressure placed on operators by rising fuel costs.

The measure was announced in May 2026 and is intended to provide temporary support to businesses operating vehicles weighing more than 3,500 kg.

The support comes during a challenging period for the logistics industry. According to an analysis published by Logistics UK, vehicle operating costs increased by more than 12% in the year ending April 2026, mainly due to increases in diesel prices, insurance costs and driver-related expenses.

What should transport operators do?

Transport companies should check:

• the expiry date of the vehicle tax for each vehicle;
• the taxation class shown on the V5C document;
• the amount displayed in the DVLA system before completing payment;
• whether the separate HGV Levy applies to the vehicle.

The reduction to £1 is a welcome form of support for transport operators. However, each company should verify the individual eligibility of every vehicle in its fleet and continue to comply with all other taxation and regulatory obligations.

DARY-SEB Logistics LTD’s commitment

At DARY-SEB Logistics LTD, we continuously monitor legislative changes and important developments within the transport industry to ensure that our fleet is managed efficiently, safely and in full compliance with legal requirements.

Our company provides professional road transport, distribution and express delivery services across the United Kingdom, using vehicles suitable for a wide range of goods and logistical requirements.

Information sources: Driver and Vehicle Licensing Agency, HM Revenue & Customs and Logistics UK.

This article is provided for general information only. Transport operators should confirm the information and the eligibility of each vehicle directly through the official GOV.UK and DVLA services.