Car tax rises set for April 2025 - full list of vehicles affected

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.

From April 2025, new tax rates will apply to electric, zero- and nil-rate low-emission vehicles. Although these types of vehicles have always required taxation before hitting the road, there was previously no charge.

However, starting from April 1, a fee will apply to both new and existing vehicles. The payable amount will vary depending on the vehicle type and registration date.

This new regulation eliminates band A under the current VED system, which is presently £0. Vehicles in this band will need to transition to the first band, where a rate becomes payable, reports Chronicle Live.

Below, we detail how the Vehicle Excise Duty (VED) changes will impact cars and what you'll need to pay. Comprehensive information on the changes can be found on GOV.UK here.

Electric, zero or low-emission cars registered on or after 1 April 2025.

You will be required to pay the lowest first-year rate of vehicle tax set at £10 from 1 April 2025. From the second tax payment onwards, you will pay the standard rate, which will be £195.

Electric, zero or low-emission cars registered between 1 April 2017 and 31 March 2025.

You will pay the standard rate, which will be £195.

Electric, zero or low-emission cars registered between 1 March 2001 and 31 March 2017.

These vehicles will transition to the first band that has a VED value. This will be £20.

Hybrid and alternatively fuelled vehicles (AFVs).

The £10 annual discount for hybrid and AFVs will be abolished, and the rate you will pay will depend on when the vehicle was first registered. If the vehicle was:

Registered before 1 April 2017 - this rate will depend on the vehicle's CO2 emissions (check the current rates for these vehicles).

Registered on or after 1 April 2017 - you will pay the standard rate (this will be £195).

Electric vans.

Most electric vans will transition to the standard annual rate for light goods vehicles. Check the current rates for these vehicles.

Electric motorcycles.

Electric motorcycles and tricycles will transition to the annual rate for the smallest engine size. Check the current rates for these vehicles.

Additional rate (expensive car supplement).

New electric and zero-emission vehicles registered on or after 1 April 2025 with a list price exceeding £40,000 will attract the standard rate plus the expensive car supplement for the first five years from the start of the second licence.