All the details you need to know about the road tax rises coming in April 2025
From April 2025, the UK government is overhauling Vehicle Excise Duty (VED), or road tax, with changes that will impact every type of driver. Whether you’re running a gas-guzzling SUV, a sensible diesel, or even a zero-emission EV, there’s no escaping the rising costs. Here’s everything you need to know about these changes, what they mean for your car, and how much you’ll be paying.
What’s Changing?
The VED system is designed to tax cars based on their environmental impact, primarily measured by their CO2 emissions. The idea is simple: the more emissions your car produces, the more you’ll pay. From 2025, these rates are being significantly increased, especially for high-emission vehicles. But even low-emission cars and EVs, previously exempt, will now face road tax.
The Big Hits for New Cars
If you’re buying a new car, your first-year tax, also known as the “showroom tax,” will be based on its CO2 emissions. Here’s how it works:
| CO2 Emissions (g/km) | New First-Year Tax (2025) |
| 0g/km (Electric Cars) | £10 |
| 1-50g/km | £110 |
| 51-75g/km | £130 |
| 76-90g/km | £185 |
| 91-100g/km | £225 |
| 101-110g/km | £260 |
| 111-130g/km | £310 |
| 131-150g/km | £405 |
| 151-170g/km | £1,000 |
| 171-190g/km | £1,630 |
| 191-225g/km | £2,240 |
| 226-255g/km | £3,220 |
| Above 255g/km | £5,490 |
High-Pollution Cars:
• Cars emitting over 255g/km of CO2 will face a first-year tax of £5,490, a 100% increase from the current £2,745.
Examples include:
• Lamborghini Urus (CO2: 325g/km)
• Range Rover 5.0-litre V8 (CO2: 294g/km)
• Mercedes-AMG G63 (CO2: 350g/km)
Mid-Range Cars:
• Cars emitting 151-255g/km will see significant hikes.
For example:
• BMW X5 xDrive40i (CO2: 190g/km): £2,240, up from £1,420.
• Toyota Land Cruiser Diesel (CO2: 230g/km): £3,220, up from £1,720.
Everyday Cars:
• For more regular cars with emissions between 76-150g/km, the increases are less dramatic but still noticeable.
Examples:
• Ford Focus 1.0 EcoBoost (CO2: 120g/km): £255, up from £190.
• Toyota Yaris Hybrid (CO2: 92g/km): £185, up from £120.
Even low-emission cars like the Toyota Prius Plug-in Hybrid (CO2: 28g/km) will rise from £10 to £110 in the first year.
Electric Vehicles: Shocked and Plugged In
Electric car buyers are in for a surprise—and it’s not from the power socket! EVs, which have long been exempt from road tax, will no longer escape.
• New EV buyers will pay £10 in the first year, followed by an annual £195 flat rate from the second year onwards.
• Existing EV owners will also join the flat-rate system, paying £195 annually, the same as petrol and diesel cars.
This move has sparked criticism, as it seems to disincentivise EV adoption, counterintuitive to the government’s environmental goals. As EV uptake is already slowing, many are questioning why tax is being introduced now.
Cars You Already Own
For those not in the market for a new car, here’s what the changes mean for vehicles already on the road. The tax depends on when your car was first registered and its emissions or engine size.
Post-April 2017 Cars
For cars registered after April 2017, the system is relatively straightforward:
• Petrol/Diesel: Rising from £165 to £195 annually.
• Hybrids: Rising from £155 to £185 annually.
• Electric Cars: Previously exempt, now £195 annually.
Pre-April 2017 Cars
For cars registered before April 2017, the tax is still based on emissions:
• Up to 120g/km: Rising from £30 to £35 annually.
• 121-150g/km: Rising from £130 to £145 annually.
• 151-225g/km: Rising from £240 to £270 annually.
• Above 225g/km: Rising from £675 to £750 annually.
Older Cars (Pre-2001 Models)
If your car was registered between 1984 and 2001, the tax is calculated based on engine size, not emissions:
• Up to 1.5 litres: Rising from £210 to £220 annually.
• Above 1.5 litres: Rising from £345 to £360 annually.
For example, my 1989 BMW 325i, with its glorious 2.5-litre straight-six engine, will now cost me £360 annually, an increase of £15.
How to Avoid Paying Road Tax
Now for the fun bit—how to beat the system, legally. Certain vehicles remain exempt from road tax:
1. Historic Vehicles: Cars over 40 years old are entirely exempt from road tax. In 2025, that means any car registered before 1 January 1985 qualifies. Don’t forget to register your car as historic online!
2. Electric Mopeds and Bikes: Fully exempt—for now.
3. Disabled Drivers: If you qualify for the disabled exemption, you’re in the clear.
The 2025 road tax changes are set to shake up the motoring world, with steep increases across the board. Whether you’re driving a classic, a hybrid, or a luxury SUV, it’s time to crunch the numbers and understand where your car fits in. For many, these changes feel like a double hit—penalising both high emissions and low-emission vehicles like EVs.
What do you think about these changes? Share your thoughts in the comments below. And don’t forget to subscribe to my channel for more motoring insights!
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