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.
CO2 | Current tax rate | Tax 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 |