Some drivers face first vehicle tax charge with bills from £10 to £195 | Personal Finance | Finance


Motorists across the UK are bracing themselves as changes to road tax systems mean many will be taxed on their vehicles for the first time. From April 1, owners of electric cars and low or zero-emission vehicles, previously exempt from tax, will have to pay.

While some will start with a modest £10 tax, but others face a £195 bill. Official guidelines state that those registering a car after April 1, 2025, will pay the lowest first-year rate of vehicle tax at £10.

However, those who bought their electric car between April 1, 2017, and March 31, 2025, will have to pay the standard rate of £195. Moreover, if you register an electric car priced at £40,000 or more after April 1, you’ll have to pay the Expensive Car Supplement – an additional tax applied from the second year of purchase at £410 annually for five years.

Annual Tax costs for new electric cars

The below values estimate the average tax for cars purchased on or after April 1. Figures for vehicles over £40,000 are based on the current expensive car supplement for April 2025 at £425 per year – but the figure could change in the future.

  Car value less than £40k Car value over £40k
Year one £20 £620
Year two £195

£620

Year three

£195

£620

Year four

£195

£620

Year five

£195

£620

Year six

£195

£620

Year seven

£195

£195

Petrol and diesel vehicles

Petrol and diesel vehicles will be taxed based on their CO2 emissions from the time they are first registered. Diesel cars may face a higher rate if they fail to meet the Real Driving Emissions 2 standard for nitrogen oxide emission – a detail that can be confirmed with the car manufacturer.

Subsequent tax payments may vary in price, depending on the vehicle type.

Alternative fuel cars

Alternative fuel vehicles, which include any vehicle not solely reliant on petrol, diesel, or electric power (such as bioethanol, liquid petroleum gas, and hybrid vehicles), will also have their initial tax payment determined by their CO2 emissions at registration. These vehicles may experience a significant change in tax charges from the second payment onwards.



Source link