DVLA warns drivers to tax vehicles ahead of VED changes from April: Who will be affected, how much to pay

By Rahmah Ghazali, Charlotte Colley

8th Jan 2025, 5:41pm

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Starting April 1, 2025, major changes to Vehicle Excise Duty (VED), commonly known as car tax, will be introduced in the UK.

These changes will affect new and existing vehicles, with an emphasis on first-year tax rates based on CO2 emissions and the removal of current exemptions for electric vehicles (EVs).

Here's what you need to know about the new rates, who will be affected, and how much you'll need to pay.

Key changes

Flat standard rate for all cars: From the second year onwards, all vehicles will pay a flat annual VED rate of £195, regardless of emissions.

First-year tax changes: For new vehicles, the first-year rates will vary based on CO2 emissions, with some significant increases:

Zero-emission vehicles: £101–50g/km CO2 (plug-in hybrids): £11051–75g/km CO2 (mild hybrids): £135Above 75g/km CO2 (petrol/diesel): Rates rise dramatically, with cars emitting over 255g/km paying up to £2,745 in the first year.

Electric cars are no longer exempt: EVs will now be subject to VED, including first-year tax and the standard annual rate.

Starting April 1, 2025, major changes to Vehicle Excise Duty (VED), commonly known as car tax, will come into effect. — Starting April 1, 2025, major changes to Vehicle Excise Duty (VED), commonly known as car tax, will come into effect. | Getty Images/Image Source

Starting April 1, 2025, major changes to Vehicle Excise Duty (VED), commonly known as car tax, will come into effect. — Starting April 1, 2025, major changes to Vehicle Excise Duty (VED), commonly known as car tax, will come into effect. | Getty Images/Image Source

Who will be affected?

New cars registered on or after April 1, 2025

Zero-emission vehicles: £10 first-year rate, then £195 annually.
Plug-in hybrids (1–50g/km CO2): £110 first-year rate, then £195 annually.
High-emission vehicles: Higher first-year rates based on emissions (e.g., £2,745 for over 255g/km CO2).

Existing vehicles

Electric cars registered between April 1, 2017, and March 31, 2025: Pay the standard rate of £195 annually.
Electric cars registered between March 1, 2001, and March 31, 2017: Move to a £20 annual rate.
Hybrid and alternative fuel vehicles (AFVs): Lose the £10 annual discount. Rates depend on the vehicle’s registration date and emissions.

Luxury Cars (List Price Over £40,000)

An additional £410 annual premium will apply for five years starting from the second year of registration.

How first-year charges compare (examples)

Zero-emission EV: £10
Plug-in hybrid (20g/km CO2): £110 (up from £0 in 2024)
Mid-range petrol car (90g/km CO2): £135 (up from £10 in 2024)
High-emission SUV (260g/km CO2): £2,745 (up from £1,170 in 2024)

Car tax CO2 emissions EVs

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