Beat the VED Tax Rise – with Read Motor Group

On April 1st 2025 the way road tax is calculated is changing - if you're considering buying a new car you need to act fast.

Vehicle Excise Duty (VED) rates will be increasing from 1st April 2025 for new cars and there are some substantial rises.

EV drivers were previously exempt from paying VED but from April 2025 these rules change. New EV's will pay £10 for the first year and then the standard annual rate - which is currently £195 - from the second year.

All cars emitting between 1-50g/km of CO2 (most plug-in hybrids) will see the first-year tax bill rise to £110. Currently, hybrids in this band pay £0 VED in the first year and petrol and diesel cars £10. Cars emitting between 51-75g/km will see the rate rise from £30 (£20 for hybrids) to £135.

The biggest price rises are targeted at any new vehicles emitting 76 g/km and above. These vehicles will see the rate double!

If the vehicle has a list price of £40,000, you must also pay an 'expensive car supplement' tax of £410 annually (on top of road tax) for the first five years. This will also apply to EV's from April 2025.

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First year tax payable on new cars

CO2Current tax rateTax rate from April 2025
0g/km (Full EV's) £0 £10
1-50g/km £10 £110
51-75g/km £30 £135
76-90g/km £135 £270
91-100g/km £175 £350
101-110g/km £195 £390
111-130g/km £220 £440
131-150g/km £270 £540
151-170g/km £680 £1,360
171-190g/km £1,095 £2,190
191-225g/km £1,650 £3,300
226-255g/km £2,340 £4,680
Over 255g/km £2,745 £5,490