Drivers of these cars set for £418 vehicle tax increase in 2025
Reach Daily Express January 01, 2025 08:39 PM

Motorists face an average £418 in 2025 with major updates to coming into effect from the spring, according to experts,

Specialists at has warned , and electric vehicles face being under the widespread changes.

A rise in the standard VED charge is scheduled while electric vehicles and hybrids also face higher rates.

However, the biggest new rule will for the most polluting models rise, meaning almost every road user will feel the impact of some increase within months.

Analysis from TaxNatives predicts the cafes could generate an extra £162.9 million in tax revenue in the first half of 2025.

They warned this could see more for new vehicles in a major blow.

Andy said: "The rise in Vehicle Excise Duty (VED) rates is part of the government's plan to cut emissions, but it's also adding financial pressure on drivers.

"If you're buying a new petrol or diesel car - especially a higher-emission model - be prepared for a bigger hit to your wallet. These aren't small increases; they're significant costs you'll need to budget for."

First-year VED rates will double for many road users with thousands added to total bills. Vehicles emitting over 255 g/km of CO2 will be forced to splash out £5,490 to use the roads in year one between the 2025/26 tax year.

This is up from the current £2,745 fee as Labour dramatically hiked fees to encourage more to make the switch to EVs.

A study from found that diesel owners will be the most affected with motorists facing an average increase of £1,113 per vehicle.

Petrol car buyers will spend an extra £89.4 million on the tax overall, working out to be an average spend of £503 per car more under the new update.

Tom Banks, car insurance expert at Go.Compare, said: "The increased VED rates mean most new car buyers will be paying a lot more than they were expecting in 2025.

"For instance, consider purchasing a low-emissions car that will place your vehicle in the cheaper tax bands."

He added: "If you can't purchase a suitable hybrid or EV, consider opting for a nearly new vehicle instead. This gives you that new car feeling for a fraction of the price, and will allow you to dodge the increased tax."

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