The UK tax changes will also apply to electronic vehicles from 1 April 2025 whether they are new or old ones. The lowest first year vehicle tax rate will be £10 and the second standard tax rate will be £195 for many electric, zero or low-emission vehicles.
You can check all the changes of UK car tax below and these all will be implemented from 1 April 2025. You can track whether your vehicle is taxed or not from the gov.uk website. The vehicle tax mostly depends on the car’s age, price, emission, engine size, etc.
UK Car Tax Changes
The UK car tax, also known as Vehicle Excise Duty (VED) is a tax that pays on driven or parked vehicles on roads in the UK. The tax amount can be different based on many things such as your car’s age, engine size, price, and how much CO2 it emits. The main reason behind the UK car tax is to use it for roads and improvement.
Another big reason behind charging this tax is to promote those cars which don’t emit CO2 and which help reduce air pollution and fight climate change. All electric, zero or low emission cars are required to pay taxes from 2025 after car tax changes in the UK. The standard rates of vehicle tax will be £195 and it will be taken effect from 1 April 2025.
How much do I need to pay after the UK car tax changes?
How much your vehicle is taxed depends on many factors such as vehicle type, age, emission, etc. Check the Updated vehicle taxes for the UK below.
- Each electric, zero or low emission car registered on or after 1 April 2025 will need to pay the lowest first year vehicle tax rate of £10 and the second tax standard rate will be £195. It’s for the very first time that electric cars will have to pay car taxes from 1 April 2025.
- Each vehicle category which is electric, zero, or low emission cars registered between April 1, 2017 to March 31, 2025, will be subject to pay the tax standard rate of £195 per year.
- The vehicles which are registered between March 1, 2001 to March 31, 2017, whether they are electric, zero, or low emission will move to the first band that has a VED value, which will be £20 per year.
- The tax rate for Hybrid and Alternatively Fuelled Vehicles (AFVs) will also be dependent on your vehicle registration and the £10 annual discount for these vehicles will be removed.
- The rate of registered vehicles before 1 April 2017 will depend on the vehicle’s CO2 emissions.
- The rate of registered vehicles on or after 1 April 2017 will be £195.
- The high value new electric and zero emission vehicles which prices more than £40,000, will be required to pay standard rate as well as the expensive car supplement. The supplement is for high-value vehicle owners which applies for years after the second license.
Who will be required to pay UK Car Tax?
The changes to the UK Car Tax rates for 2025 will be implemented on many types of vehicles. The rates changes are discussed above and now I would like to tell you which type of vehicle will face taxes change in 2025.
- Hybrid and Alternatively Fueled Vehicles (AFVs)
- Electric Vans
- Electric Motorcycles
- Electric, Zero, or Low Emission Cars Registered on or After April 1, 2025
- Electric, Zero, or Low Emission Cars Registered Between April 1, 2017, and March 31, 2025
- Electric, Zero, or Low Emission Cars Registered Between March 1, 2001, and March 31, 2017
- Vehicles with price more than £40,000
When will UK Car Tax Changes take into effect?
The upcoming UK Car Tax rates will take effect from 1 April 2025, it means all new and old vehicles whether they are electronic or not, will be subjected to the revised tax rates. These adjustments have been made by the UK government to run the tax system efficiently and fairly.
The vehicle owners which are required to pay these taxes must be aware of all tax changes to avoid confusion and compliance later. You can seek the official website of the UK government if you have specific questions related to these changes.
How can I check if my vehicle is taxed?
The process of checking whether your vehicle is taxed or not is too easy if you follow the below given steps.
- Individuals have to go to this official gov.uk website https://www.gov.uk/check-vehicle-tax.
- After reaching this page, click on the “Start now” button to begin the process to check if your vehicle is taxed or not.
- In the required field, individuals have to enter the vehicle’s registration number (number plate) and tab “submit” button.
- After that, some vehicle information will be displayed on your screen which you need to verify whether you are checking for the correct one or not.
- Here, you can check whether your vehicle is taxed or not. This service will also provide you information related to current tax rates for your vehicle with some additional requirements.
