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If you're thinking about buying a new or used car in 2025, you'll want to be aware of some important tax changes. From April 1, Vehicle Excise Duty (VED) rules in the UK have undergone a major update – and they affect nearly all drivers, including electric car owners.
For the first time, electric vehicles (EVs) are no longer exempt from road tax. If you register a brand-new EV after 1 April 2025, you’ll now pay a £10 first-year VED, followed by a standard £195 annual rate. Also, if your new EV costs more than £40,000, the luxury car tax – an additional £425 per year for five years – will also apply.
EVs registered between 1 April 2017 and 31 March 2025 will now pay the standard £195 rate too. Electric vans are also included in the shake-up, facing a flat annual fee of £355 – the same as petrol and diesel vans.
The biggest hit applies to brand-new petrol, diesel and hybrid cars, some of which now face double the first-year tax compared to last year. For example, vehicles emitting 91 g/km to 100 g/km CO₂ emissions will now incur £350 – up from £175. The steepest rate? Cars emitting more than 255 g/km now face a sizeable £5,490 in first-year road tax.
Owners of older vehicles aren’t spared either. Cars registered between 2001 and 2017 with emissions less than 100 g/km now face a £20 annual tax – where it was previously free.
While you don’t need to act if you already pay by Direct Debit, it’s a good time to check how much tax your current or next car may incur.
At Burton Kia, we’re here to help Staffordshire drivers navigate these changes. Whether you're looking to switch to electric, reduce emissions or explore affordable options, our team is ready to offer you every assistance.
Thinking about making the switch? There’s still time to save on tax by considering a used EV registered before April 2025. Visit us in Burton-on-Trent and let us help you make a smart, future-ready choice.
