VED Road Tax Increase for Petrol Cars in UK – Effective 2025

Starting April 1, 2025, the UK government has implemented significant changes to Vehicle Excise Duty (VED), commonly known as road tax, affecting petrol vehicles. These adjustments aim to encourage the adoption of lower-emission and electric vehicles while ensuring that all drivers contribute fairly to road maintenance and environmental initiatives.

VED Road Tax Increase for Petrol Cars in UK – Effective 2025

Key Changes in VED for Petrol Cars

Increased First-Year Tax Rates

The first-year road tax for petrol cars has seen a substantial increase:

  • 0g/km CO₂ emissions: £10 (previously £0)

  • 1–50g/km CO₂ emissions: £110 (previously £10)

These changes apply to all new petrol cars registered on or after April 1, 2025.

Standard Annual Tax Rate

From the second year onwards, all petrol cars registered after April 1, 2017, will pay a flat annual rate of £195, irrespective of their CO₂ emissions. This standard rate applies to petrol, diesel, hybrid, and electric vehicles.

Introduction of the Expensive Car Supplement

A new ‘Expensive Car Supplement’ has been introduced:

  • Applicable to: Cars with a list price over £40,000

  • Additional annual charge: £425

  • Duration: Years 2 to 6 of ownership

This supplement applies to both new and used cars registered after April 1, 2025, if their original list price exceeds £40,000.

VED Road Tax Bands for Petrol Cars (Effective April 2025)

CO₂ Emissions (g/km) First-Year Tax (£) Standard Annual Tax (£)
0 10 195
1–50 110 195
51–75 195 195
76–90 195 195
91–100 195 195
101–110 195 195
111–120 195 195
121–130 195 195
131–140 195 195
141–150 195 195
151–165 195 195
166–175 195 195
176–185 195 195
186–200 195 195
201–225 195 195
226–255 195 195
Over 255 195 195

Additional Considerations

  • Electric Vehicles (EVs): EVs registered after April 1, 2025, will pay £10 in the first year and £195 annually thereafter. Previously, EVs were exempt from VED.

  • Hybrid and Alternative Fuel Vehicles: The £10 annual discount for hybrids and alternative fuel vehicles has been removed. These vehicles will now pay the standard £195 annual tax.

  • Used Cars: Used petrol cars registered after April 1, 2017, will also be subject to the standard £195 annual tax.

Frequently Asked Questions (FAQs)

1. Will my petrol car’s road tax increase in 2025?

Yes, if your petrol car was registered after April 1, 2017, you will pay a standard annual VED of £195 from the second year onwards.

2. What is the ‘Expensive Car Supplement’?

It’s an additional annual charge of £425 for cars with a list price over £40,000, applicable from years 2 to 6 of ownership.

3. Are electric vehicles affected by the new VED rates?

Yes, EVs registered after April 1, 2025, will pay £10 in the first year and £195 annually thereafter.

4. How can I check my car’s VED rate?

You can check your car’s VED rate using the official government tool: Check Vehicle Tax.

These changes reflect the UK’s commitment to reducing emissions and promoting sustainable transportation. While the adjustments may increase costs for some drivers, they also aim to incentivize the adoption of cleaner vehicles and contribute to environmental goals.

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