Higher Car Tax: Quick Guide to Check if You'll Pay More in 2025
Vehicle Excise Duty (VED) has increased as of April 1, 2025, affecting millions of UK drivers. Here's what you need to know about the new car tax changes and how to check if you're affected.
Key Changes in Car Tax Rates:
For cars registered between 2001-2017:
- Tax is calculated based on CO2 emissions
- Higher emissions mean higher tax rates
- Previous low-emission benefits have been reduced
For cars registered after 2017:
- Standard rate increased from £190 to £195 (from second year onwards)
- First-year rates doubled for cars emitting 76g/km+ of CO2
- Highest band (255g/km+) now costs £5,490
New Electric Vehicle (EV) Taxation:
- £10 'showroom tax' in first year
- £195 standard rate from second year (for cars registered April 2017 - March 2025)
- £20 annual rate for EVs registered before March 2017
- Electric vans now taxed at £355 annually
- £425 additional charge for EVs over £40,000 (years 2-6)
Low-Emission Vehicle Changes:
- 1-50g/km CO2: Now £110 (previously £0-£10)
- 51-75g/km CO2: Now £135 (previously £20-£30)
How to Check Your Car Tax:
You can verify your VED amount using:
- Online number plate checker
- Vehicle Certification Agency (VCA) website
- MOT history and vehicle recall information
Exemptions Still Apply For:
- Vehicles with SORN
- Historic vehicles (over 40 years old)
These changes represent up to a 34% tax increase when combined with existing fuel duty and VAT, significantly impacting UK drivers' annual vehicle costs.
[Original author byline and date retained but reformatted] Siobhan Doyle May 01, 2025