Major car tax changes coming from April
Major changes to the UK's car tax system are just around the corner and they could mean heftier charges for some vehicles. Motorists are being urged to get clued up on the new rules to understand how their wallets might be affected.
Do you think the new car tax hikes are fair? Have your say in our comments section
The revisions kicking in from April could sway buying decisions, particularly when it comes to new motors. To keep abreast of all the latest driving news, why not subscribe to our newsletter here?
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Vehicle excise duty is set to go up for some new models, especially those with higher emissions, as part of a push to steer people towards greener or electric options. New petrol and diesel cars that emit more than 76g/km of CO2 will see their first-year tax rates double.
For example, if you buy a new car that emits between 76-90g/km, you'll be slapped with a £270 fee, and the cost rockets for more polluting vehicles.
Usually, vehicle tax is highest for new cars in their first year on the road before dropping to the standard annual rate of £195. Those thinking about splashing out on a new car need to factor in these extra costs, Birmingham Live reports.
In a significant change, owners of electric vehicles will be required to pay ehicle tax for the first time. Richard Evans, a spokesperson for the car buying website webuyanycar, remarked: "For vehicles running on diesel or petrol emitting over 76g/km of CO2, the first-year tax will double compared to the current rate."
He continued, "Even electric vehicles aren't exempt. From April 1, 2025, EVs will no longer be exempt from road tax, and their £0 first-year rate will rise to £10 for people buying an EV after April 2025."
However, budgeting expert Beth Turbutt-Rogers has revealed a clever trick for electric vehicle (EV) owners to avoid the increase in road tax from 2025. As EV drivers prepare for the new road tax charges from April 1, Beth disclosed a smart loophole that could grant them an additional year without the cost.
She suggested: "Go on to the government's website and renew your car tax even if you're not due to do this until the end of the year."
By strategically planning the renewal, Beth explains, drivers can extend their "totally free" tax period. Sharing her personal success with her Tiktok followers, Beth said: "Mine isn't due until November, but I've just been online and taxed my car for another year from today and it means I won't have to pay any tax until February 2026."
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