UK motorists may consider selling their cars due to a hike in road tax, it has been suggested. The DVLA has this month increased the tax for millions of drivers, with several changes to existing charges including a rise in the standard rate for all vehicles and the end of the tax exemption for electric vehicles (EVs).
There have also been tax hikes for low-emission vehicles, while the first-year rates for new cars with high emissions have doubled. has warned that these new tax rates could see the average UK car owner paying over £650 annually in fuel duty and road tax.
The new standard annual road tax rate has gone up from £190 to £195 and applies to all cars, including EVs registered between April 1, 2017 and March 31, 2025. New EVs registered from April 1, 2025, will be taxed £10 in the first year, a move known as the 'showroom tax,' while those with a list price over £40,000 will also face the 'expensive car supplement'.
These high-value cars will now have to pay an extra £425 per year between the second and sixth years of ownership. However, all EVs registered before March 31, 2017, will pay a lower annual rate of £20.
New regulations have hit low-emission vehicles, with those emitting between one and 50 g/km of CO2 now facing a £110 tax rate. Previously, most plug-in hybrids in this band paid no road tax in the first year, while petrol and diesel cars paid just £10, reports .
The first-year road tax for newer cars emitting between 51-75 g/km has jumped to £135, up from the previous £20 for hybrids and £30 for petrol and diesel vehicles. Rates for new cars producing over 76g/km have also skyrocketed, doubling in cost.
As a result, new vehicles in the top bracket of 255g/km and above will now be hit with a first-year charge of £5,490. This affects 59 new models from 24 different car manufacturers, including luxury cars like Bentley's Continental W12, Porsche's 911 Turbo, and Land Rover's Defender V8.
For those who own cars first registered on or after March 1, 2001 and are struggling to understand how these changes affect them, offers an online CO2 emissions checker tool. This can be used to identify emission levels and calculate due car tax.
Richard Evans, head of technical services at Webuyanycar, described the recent changes in vehicle tax as a 'pivotal shift' for UK drivers.
Evans stated: "The most recent DVLA tax changes mark a pivotal shift for British motorists, particularly for EV owners, who are now facing road tax for the first time. Whilst these changes may well cause British drivers to reconsider their vehicle choices, it is difficult to predict exactly how it will impact people's decision to sell their current vehicles as despite the changes and increases across the board, EV drivers still have the most favourable road tax rates.
"One thing we do know is that since these changes took effect on April 1, owners of EVs first registered before April 2017 now have the cheapest annual road tax rate of all at £20. This makes older EVs an attractive option for budget used car buyers looking to save on running costs.
"Meanwhile, road tax rates for cars producing over 76 g/km of CO2 have doubled, so, if you buy a new luxury or performance car in the highest emissions band, you'll now face a £5,490 first-year road tax bill. Therefore, if ownership costs are a concern, it pays to opt for a greener motor."
Full list of tax changes from April 1
New standard road tax rate: The new annual standard rate for road tax has now increased from £190 to £195. This will now apply to all vehicles that have been first registered after April 1, 2017, and before March 31, 2025.
New taxes for EVs: The previous road tax exemption for all electric vehicles (EVs) has been scrapped. From April 1, new EVs will be subject to a £10 'showroom tax' in their first year. Furthermore, any EVs registered between April 1, 2017, and March 31, 2025, will have to pay the new standard rate road tax of £195 per annum. Those registered before March 31, 2017, will enjoy a lower annual rate of £20.
The £10 discount on the standard rate road tax for alternative fuel vehicles, including hybrid, bioethanol and liquefied petroleum gas (LPG) cars, has also been discontinued. These vehicles will now be subject to the new standard annual rate of £195.
Electric vans will now be taxed at an annual rate of £355, the same as petrol and diesel light goods vehicles. Additionally, any electric vehicles with a list price over £40,000 will incur an extra £425 per year between the second and sixth years of ownership, known as the 'expensive car supplement'.
Doubling first-year rates for higher-polluting new cars: The first-year rates for higher-polluting new cars have doubled. Cars emitting 76g/km or more will now pay twice the previous rate in their first year.
The highest band, those emitting 255g/km or more, will now face a hefty £5,490 tax in their first year. This top rate will affect 59 new models from 24 car manufacturers, including the Bentley Continental W12, Porsche 911 Turbo and Land Rover Defender V8.
Tax increases for low-emission vehicles: First-year road tax rates for low-emission vehicles emitting between 1 and 50g/km of CO2 have risen to £110. Previously, most plug-in hybrids in this band were exempt from first-year road tax, while petrol and diesel cars paid £10. The first-year road tax for new cars emitting 51-75g/km has increased to £135, up from £20 for hybrids and £30 for petrol and diesel cars.
However, there are still some exemptions to car tax:.
SORN vehicles: Vehicles with a Statutory Off-road Notification (SORN) won't need to pay road tax for that specific vehicle. They will also be eligible for a road tax refund from the DVLA if they have any full months' tax remaining.
Historic vehicles: Typically, cars over 40 years old can apply for road tax exemption, but this is not automatic. Drivers must apply once their car meets the eligibility criteria.
Drivers with disabilities: Drivers can seek exemption from road tax if they are in receipt of:
