New car tax changes will have ‘big dent in wallets’ from this date


Motoring experts at Cars2Buy explained: “Big changes are hitting the road in 2025, and they’re set to make a dent in our wallets. 

“Starting in 2025, significant updates to UK car tax are rolling out, impacting petrol, diesel, and electric car owners alike.”

Standard VED rates for cars built after 2017 will rise from £190 to £195 within a matter of weeks. 

However, the most significant update is around first-year VED fees with some of the most polluting models set to see prices double. 

Cars emitting over 255g/km of CO2 will pay an eye-watering £1,745 more from April 1, 2025 with total bills rising to a staggering £5,490 in year one. 

Discounts and exemptions will come to an end for electric car and hybrid owners with many set to pay the standard £195 charge. 

However, there are fears many could be hit with a bonus £425 charge through no fault of their own due to Expensive Car Supplement (ECS) rules. 

Any model valued at over £40,000 will pay the charge between the second and sixth years of a vehicle’s lifespan.

Even second-hand owners could be liable for the fee with recent data from Alphabet suggesting as many as four out of five EVs could be above the price threshold. 

Cars2Buy added: ‘From April 2025, new car tax rules will kick in across the UK. This means drivers of all types of cars – whether petrol, diesel or electric – will need to consider how these changes impact their wallets. 

“For many, it marks the end of an era where electric cars have been tax-free.”



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