Some Vehicles Get Huge Increase in Road Tax from 1st April

31st March 2025

road tax (Vehicle Excise Duty, or VED) is increasing in the UK starting April 1, 2025. Here are the key changes:

Electric Vehicles (EVs): EVs will no longer be exempt from road tax. New EVs registered after April 1, 2025, will pay a first-year rate of £10, and then the standard rate of £195 annually. EVs costing over £40,000 will also incur a £425 "luxury car tax" supplement.

Higher Emission Vehicles: Cars emitting over 255g/km of CO2 will face the steepest increase, with first-year rates doubling from £2,745 to £5,4903.

Standard Rates: The flat rate for most cars will rise to £195 annually, with hybrids paying slightly less.

These changes aim to encourage the adoption of lower-emission vehicles and generate additional revenue for the government.