The new vehicle first registration fee is to increase from May 1 from £38 to £50.

The move by the Driver and Vehicle Licensing Agency was revealed today. Further increases will be introduced on April 1, 2008 and April 1, 2009 The levels of the increases have not yet been fixed.

In addition, the fee for a replacement registration certificate (V5C) will also increase from £19 to £25 on May 1 .

The effective date for the increased first registration fee is dependent upon the date of first registration i.e. if the date of registration is May 1, then the fee payable is £50 irrespective of the date the transaction is processed and completed. On the other hand, if the date of registration is April 28, the fee will remain as £38.