Drivers living in these areas to be most affected by new £685 car tax changes – full list

drivers queueing on busy motorway

Motorists living in one area could pay more due to VED tax rises (Image: Getty)

Motorists are set to pay more than anywhere else when new come into effect next April, according to analysis. 

New data from has revealed Mid Ulster in Northern Ireland will pay the highest first-year rates compared to anywhere in the UK. 

Motorists in the region are likely to pay an average of £689 more for road users. 

Although location doesn’t directly impact the amount of tax charged to road users, the data shows which areas could be more affected by changes based on cars usually purchased there. 

It means regions that tend to favour highly polluting and cars which emit larger amounts of CO2 than areas opting for cleaner models. 

heavy traffic on a busy road

First-year petrol and diesel models will pay more (Image: Getty)

The data looked at Department for Transport sales figures on the number of new private vehicles registered in each region over the first half of the 2024 tax year.

Experts then applied the existing and upcoming first-year rates for VED to common purchases to estimate how much more motorists will pay if buying habits remain the same.

Tom Banks, car insurance expert at , said: “The increased VED rates mean most new car buyers will be paying a lot more than they were expecting in 2025. If you live in a region where buyers tend to go for high CO2 cars, then drivers in your area will be the most impacted by the rise.”

Inner London was second on the list with road users likely to pay a staggering £625.94 more from next year under the dramatic changes. 

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Windsor and Maidenhead were next with bills tipped to be £538.25 more, followed by Surrey (£514.34), Cheshire East (£510.89) and Fermanagh and Omagh ((£502.25).

Labour is set to radically hike first-year VED rates for the highest-polluting models in a radical overhaul of tax rules. 

Some car owners will now pay double in year one, with models emitting more than 255g/km of CO2 most affected. 

In this category, with motorists set to pay £5,490 per year compared to the current £2,745 charge. 

Tom added: “If you’re worried about how the changes will affect you, there are ways to minimise the impact on your finances.

“For instance, consider purchasing a low-emissions car that will place your vehicle in the cheaper tax bands. If you can’t purchase a suitable hybrid or EV, you could opt for a nearly new motor instead. 

“This gives you that new car feeling for a fraction of the price, and will allow you to dodge the increased tax.”

Extra cost of first-year VED rates from April 2025 by local authority area

  1. Mid-Ulster – £689.00
  2. Inner London – £625.94
  3. Windsor and Maidenhead – £538.25
  4. Surrey – £514.34
  5. Cheshire East – £510.89
  6. Fermanagh and Omagh – £502.25
  7. Aberdeenshire – £499.28
  8. Newry, Mourne and Down – £494.59
  9. Shropshire – £494.52
  10. Buckinghamshire – £489.05

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