' latest tax raid will come into effect in mere days affecting millions of road users. From April 1, 2025, drivers will be hit with new car tax changes - many having been announced by the Chancellor in October's Autumn Statement.
for cars, vans, and motorcycles - although it will exclude first year rates for cars. Electric vehicle owners will also have to pay for the first time ever. It will be increased in line with RPI inflation.
Models registered between 2001 and 2017 will be affected more dramatically under new hikes.
Cars manufactured over the 16-year period are charged VED based on how much pollution models emit instead of a flat fee. Motorists are placed into bands based on emissions levels with costs dramatically varying.
Richard Evans, spokesperson for webuyanycar, revealed that nearly by the change.
He said: "From April 2025, road tax is expected to increase for every vehicle. The aim is to encourage more lower-emission and electric vehicles on the road."
He added: "Additionally, for pre-2017 vehicles running on diesel or petrol and emitting over 76g/km of CO2, compared to the current rate. Taking steps towards a more eco-friendly road can only be seen positively and as electric vehicles become increasingly popular amongst car buyers, securing 21.6% of the market share, these Budget announcements will come as no surprise to many.
"For those with vehicles manufactured before 2017, who may be affected by these road tax increases, it could be time to consider swapping your car for a new, ."
The Chancellor could also announced changes to the Expensive Car Supplement (ECS) in the Spring Statement. The ECS costs £410 for the first five years and is paid by owners of vehciles with a list price of over £40,000.
Electric vehicles (EVs) will . EVs registered after 1 April will be liable for a first-year rate of £10 until 2029, but those costing over £40,000 will also have to pay the 'Expensive Car Supplement' or luxury car tax, which is £425 per year.
EVs registered between 1 April 2017 and 31 March 2025 will now be subject to the same standard road tax rate (£195 annually) as other motorists.
Cars emitting between 1-50 g/km of CO2, which includes most plug-in hybrids, will see their first-year tax bill increase to £110. Previously, hybrids in this band paid no VED in the first year, while petrol and diesel cars paid £10.
New cars emitting between 51-75g/km of CO2 will see their car tax rise from £30 (or £20 for hybrids) to £135.
First Year Rates (FYRs) of VED will vary according to the carbon dioxide (CO2) emissions of the vehicle. Cars producing no emissions will pay £10 for the first year, and then the £195 standard rate from the second year. This means owners of cars emitting the