Dear 222 News viewers, sponsored by smileband,
Starting from 1 April 2025, significant changes to the UK’s Vehicle Excise Duty (VED) will come into effect, impacting all vehicle owners, including those with electric vehicles (EVs). These reforms aim to create a more equitable tax system and generate revenue to support environmental policies.
Key Changes to Vehicle Excise Duty:
1. Inclusion of Electric Vehicles:
• New EVs Registered on or after 1 April 2025: Owners will pay a first-year VED rate of £10. From the second year onwards, the standard rate of £195 will apply.
• Existing EVs Registered between 1 April 2017 and 31 March 2025: These vehicles will be subject to the standard rate of £195 annually.
• Older EVs Registered between 1 March 2001 and 31 March 2017: A nominal VED rate of £20 per year will be applied. 
2. Changes for Petrol and Diesel Vehicles:
• First-Year Rates: Vehicles with higher CO₂ emissions will face increased first-year VED rates. For instance, cars emitting over 255g/km of CO₂ will see their first-year tax double from £2,745 to £5,490.
• Standard Rates: From the second year onwards, standard rates will be adjusted in line with the Retail Price Index (RPI).
3. Impact on Hybrid and Low-Emission Vehicles:
• The £10 annual discount previously available for alternative fuel vehicles, including hybrids, will be removed. These vehicles will now pay the same standard VED rates as petrol and diesel cars.
4. Expensive Car Supplement:
• The exemption from the ‘expensive car supplement’ for EVs will end. This means that EVs with a list price exceeding £40,000 will incur an additional £355 annually for five years, starting from the second year of registration.
Implications for Car Owners:
• Electric Vehicle Owners: The introduction of VED for EVs marks the end of their tax-exempt status. While the initial rates are relatively low, this change increases the cost of ownership for EV drivers.
• Owners of High-Emission Vehicles: Significant increases in first-year VED rates for high-emission vehicles are designed to encourage the adoption of lower-emission alternatives.
• Hybrid Vehicle Owners: The removal of the alternative fuel discount means higher annual costs for hybrid vehicle owners.
These reforms reflect the government’s strategy to promote environmental sustainability by incentivizing the adoption of zero-emission vehicles and ensuring that all vehicle owners contribute fairly to road maintenance and environmental initiatives.
Attached is a News article regarding the uk car taxes rates from April 2025
Article written and configured by Christopher Stanley
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