New car tax changes will come into effect in April 2025 (Image: Getty)
Thousands of car owners are set to be slapped with at least a £190 per year charge for the first time within months.
It comes after the Department for Transport (DfT) confirmed a major update
Officials have unveiled that owners will pay car tax for the first time in April 2025.
The plan was first announced under the Conservatives back in 2022 but the DfT’s announcement confirms Labour has supported the plan.
The annual VED rate currently stands at £190 per annum but the has previously stressed fees are “subject to change” ahead of 2025.
Electric car owners will be affected by VED changes (Image: Getty)
Rates usually slowly rise every year meaning to stay on the roads.
: “From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.”
They added: “Electric and low emission cars registered between 1 April 2017 and 31 March 2025
“You will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.”
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The changes are paid by those with petrol and diesel vehicles.
However, owners of brand-new electric models will not be exempt from changes despite paying a lot less.
Those who have just registered a car will
Currently, this is charged at £20 per year but fees could again be subject to rises in the run-up to next April.
The DVLA said: “This new measure effectively removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.
“Electric and low emission cars registered on or after 1 April 2025. You will need to pay the lowest first-year rate of vehicle tax (which applies to vehicles with CO2 emissions 1 to 50g/km).
“From the second tax payment onwards, these vehicles will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.”