Some motorists will face a £100 car tax rise in 2025
New £100 bills will hit thousands of motorists within a matter of months as part of widespread changes.
VED rates are set to increase for almost all motorists from next Spring with , and owners set to be stung.
Standard fees are set to rise in line with Retail Price Index (RPI) inflation, while will hike first-year tax rates across the board.
Petrol and diesel owners will feel the biggest sting with electric car owners also set to pay rates for the first time.
However, owners of hybrid vehicles will also be impacted with motorists staring down the barrel if a £100 rise come April 2025.
Plug-in hybrid owners will be affected by the new fee
Hybrid cars fuse together an internal combustion engine and an electric motor, offering the best of both worlds for those still on the fence over a full EV adoption.
Up until now, hybrid owners have been looked upon favourably with cheap tax fees as an incentive to switch.
But, the first big rise is on its way with the £10 first-year VED rate set to rise by over 10 times as part of the updates.
Experts at explained: “One of the most notable adjustments is the eye-watering rise in first-year tax for vehicles with emissions between 1-50g/km of CO₂ – a group of cars that includes most hybrids.
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“The rate for these vehicles will soar from £10 (or zero for hybrids) to £110.
“This increase will impact a large number of plug-in hybrid models in this category.
“For cars emitting between 51-75g/km of CO₂, rates will also rise, going from £30 (or £20 for hybrids) to £135.”
According to , there are just over 650,000 plug-in hybrid vehicles on UK roads.
There are now well over a million electric models registered in the UK with the bulk of the country still behind the wheel of combustion machines.
The DVLA has previously admitted the £10 annual discount for hybrid and AFVs will be removed from 2025.
They stress that the rate road users will pay will depend solely on when a vehicle was first registered.
If the vehicle was registered before 1 April 2017 – charges will depend on the vehicle’s CO2 emissions.
Newer models registered on or after 1 April 2017 will pay the standard rate, set to be £195 per annum from next Spring.