Millions of UK drivers face £195 charge due to major car tax shake-up
Millions of UK drivers face £195 charge due to major car tax shake-up
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Millions of electric vehicle (EV) drivers have been warned over a huge car tax change that is due to come into force in a few weeks. Under current rules, EVs owners do not need to pay car tax - but this 10-year exemption is due to come to an end from April this year. If you have an electric, zero or low emission cars that is registered on or after April 1, 2025, you will pay the lowest first year rate of vehicle tax of £10.
From the second tax payment onwards, you’ll be charged the standard rate of £195. Electric, zero or low emission cars registered between April 1, 2017 and March 31, 2025 will pay the standard rate of £195 from April this year. Electric, zero or low emission cars registered between March 1, 2001 and March 31, 2017 will pay £20 car tax from this April. EVA England, which is an association for electric vehicle drivers, said: "Vehicle tax is changing for electric and low emission vehicles from 1 April 2025. Drivers will need to pay vehicle tax in the same way as those of petrol and diesel vehicles. This will apply to both new and existing vehicles.".
New car tax rates are also being applied to newly registered vehicles - known as the showroom tax - from this April. If you purchase a new vehicle from April 2025 that emits between 1-50 g/km of CO2, including hybrid vehicles, the amount you’ll pay in car tax will rise from £10 to £110. The rates for new cars emitting 51-75g/km of CO2 will increase from £30 to £130, while all other rates for cars emitting 76g/km of CO2 and above will double from their current level. For a car that emits over 255g/km of CO2, the first-year rate will double from £2,745 to £5,490.
The changes will affect new cars purchased from April next year - so if you have a used car, you won’t be affected by the higher rates. How much you pay in car tax depends on when your car was registered. All petrol and diesel cars manufactured from 2017 onwards pay a flat rate of £190. But if your car was built between 2001 and 2017, then your car tax is based on how many emissions your vehicle produces. Cars that produce up to 100g/km of CO2 pay no car tax. But even if you don’t need to pay anything, you still need to renew your vehicle every year with the DVLA.
