New car tax changes will hit motorists within months
The amount that – fees will rise for thousands of and owners across the UK next April has been revealed.
VED charges are paid by almost all combustion owners with from April in line with Retail Price Index (RPI) inflation.
However, Chancellor Rachel Reeves will for petrol and diesel owners in a major overhaul.
Meanwhile, electric car owners for the first time as exemptions come to an end for zero-emission vehicle owners.
According to experts at , standard annual rates paid by petrol and diesel owners will rise by £5 from April.
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Standard rates will rise by £5 but first-year fees face staggering hikes
It means yearly charges will jump from £190 per year to £195 every 12 months as part of the annual update.
However, the much bigger change is in relation to VED rates for first-year petrol and diesel owners.
Under dramatic changes, owners of the most polluting models will now pay double with thousands added to bills.
Those securing will be charged a whopping £5,490 in year one, up from the current £2,745 fee.
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Vehicles emitting between 226 and 255g/km of CO2 are also set to feel the sting with fees up from £2,340 to £4,680 from next year.
Electric car owners will face a lower first-year rate of just £10 but will then be put onto the standard £195 per year fee.
But there is some concern that EV owners will be more affected by the Expensive Car Supplement (ECS) charge.
This is an extra £410 a year fee applied to owners of the most expensive cars valued over £40,000 for up to five years.
However, the price tag of many middle-market EVs is so high that most models will be affected by the massive charge.
said: “This measure will uprate the Vehicle Excise Duty rates for cars (excluding first-year rates) and all other rates for vans, motorcycles and motorcycle trade licences by the Retail Price Index, and will reflect the inclusion of zero-emission vehicles in Vehicle Excise Duty from 1 April 2025.
“This is a standard uprating to come into effect from 1 April 2025.”