Budget 2027 announcements. Implementation dates vary. · By K Imports

Budget 2027: VRT and electric vehicle relief

EV relief to end-2028 and the Category A VRT increase for higher-emission cars.

Sources checked 2026-10-07.

Who it affects and when

Audience: People registering vehicles and comparing electric with other cars.

Timing: Higher Category A percentage rates: 1 January 2027. EV relief extension: to 31 December 2028.

EV relief: VRT relief for electric vehicles extends by two years to the end of 2028. Existing eligibility and vehicle-value restrictions matter; the extension is not a €5,000 refund for every EV.
Category A rates: The percentage rates for Category A CO₂ bands 3–20 increase by one percentage point for cars above 80g/km. Bands 1 and 2 remain unchanged. This is not a flat one-percent increase in every car's total purchase cost.

Check the vehicle's emissions band and registration date.
Use the relevant taxable vehicle value and any applicable relief conditions.
Keep purchase taxes separate from annual fuel, electricity, insurance and servicing costs.