Car Tax Changes April 2025 – From the second tax payment. Standard ved rates to rise in line with rpi inflation. Uk car tax changes from april 2025: New tax rate for new cars from 1st april 2025:

Are expected to face a £2,745 car tax increase in april 2025. Current new car tax rates before 1st april 2025: Motorists are bracing themselves for a sharp hike in vehicle expenses come april, with many facing significant rises in road tax. Motorists are being alerted to changes in vehicle excise duty (ved) that will come into effect in april, resulting in higher tax rates for many drivers.

Car Tax Changes April 2025

Car Tax Changes April 2025

Evs taxed, higher tax rates for new cars & increased luxury car supplement tax. From april 2025, new tax rates will apply. Currently, evs escape the luxury vehicle tax, but under the new rules, any evs priced at £40,000 or more and registered after april 1 2025 will also have to pay an additional £425 per year.

From the second tax payment onwards, you will pay the standard rate, which will be £195. Currently 2 per cent, it will rise to 3 per cent in april 2025, then to 4 per cent in 2026 and 5 per cent in 2027. Motorists are being alerted to changes in vehicle excise duty (ved) coming into effect in april, which will result in higher tax rates for many drivers.

See how it affects you. The treasury said it would raise the standard vehicle excise duty (ved) rates for cars, vans and motorcycles in line with inflation from april 1, 2025 The government will introduce changes the vehicle excise duty (ved) first year rates for new cars registered on or after 1 april.

In the autumn budget 2024, held on 30 october, rachel reeves announced the following changes, which will apply to 2025/26 tax years and take effect in april 2025:

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