Big increases in road tax (VED) in the UK from April 2025

Vehicle Excise Duty (VED), or car tax, applies to all cars registered and approved for road use in the United Kingdom. It is therefore a fixed expense that drivers have to factor in, and the increases coming into force from April 2025 will make keeping a vehicle in the UK more expensive. We understand that finding your way around the new rules and rates can be complicated, which is why we have prepared a short guide to the VED changes to help.

Summary & key takeaways

From April 2025 first-year VED rates double for cars emitting more than 75 g/km of CO2.
Electric cars lose their VED exemption - new ones pay £10 in the first year, then £195.
The standard rate from the second year rises from £190 to £195, and hybrids lose the £10 discount.
Cars with a list price above £40,000 pay an extra £425 a year for 5 years.
Exemptions include vehicles used by disabled people and cars made before 1985.

Changes to car tax in the UK in 2025

VED increases for petrol and diesel cars

The main changes in 2025 include the end of the zero tax rate for zero-emission cars, as well as significant increases to the tax in the first year after registration. The rise is particularly painful for vehicles with CO2 emissions above 75 g/km - here the rates double compared with 2024.

Car tax rates for vehicles registered:

before 1 March 2001 are determined by engine size:

Engine sizeRate in tax year 2024/25Rate in tax year 2025/26up to 1549cc£210£220over 1549cc£345£360

between 1 March 2001 and 31 March 2017 depend on CO2 emissions:

CO2 emissions (g/km)Rate in tax year 2024/25Rate in tax year 2025/26up to 100£0£20101 to 110£20£20111 to 120£35£35121 to 130£160£165131 to 140£190£195141 to 150£210£215151 to 165£255£265166 to 175£305£315176 to 185£335£345186 to 200£385£395201 to 225£415£430226 to 255£710£735over 255£735£760

on 1 April 2017 or later are subject to two road tax rates:

in the first year after registration the rate depends on CO2 emissions

CO2 emissions (g/km)Rate in tax year 2024/25Rate in tax year 2025/260£0£101 to 50£10£11051 to 75£30£13076 to 90£135£27091 to 100£175£350101 to 110£195£390111 to 130£220£440131 to 150£270£540151 to 170£680£1,360171 to 190£1,095£2,190191 to 225£1,650£3,300226 to 255£2,340£4,680over 255£2,745£5,490

the standard rate applying from the second year after registration rises in 2025/26 to £195 from £190 in 2024/25

Electric cars and road tax: the end of the VED exemption from 2025

One of the biggest changes coming into force from 1 April 2025 is that road tax now covers all electric, low- and zero-emission cars, which were previously exempt. This applies to both new vehicles and those already registered. Here too, the tax rate depends on the year of registration:

between 1 March 2001 and 31 March 2017 - £20;
between 1 April 2017 and 31 March 2025 - the standard rate of £195 applies;
from 1 April 2025 - the lowest rate of £10 applies in the first year, and the standard rate of £195 in subsequent years.

New rules for hybrid cars

Owners of hybrid and alternative fuel vehicles also face changes - in 2025 the £10 discount available in previous years no longer applies. Cars registered before 1 April 2017 will be subject to the appropriate rate based on CO2 emissions; for vehicles registered from 1 April 2017 the standard rate of £195 applies.

Tax on luxury cars

Cars with a list price above £40,000 are subject to an additional charge, the expensive car supplement, which is £425 per year and is paid for 5 years, starting from the second year the vehicle is taxed.

Importantly, zero-emission and electric cars registered before 1 April 2025 are exempt from this charge, but owners of new vehicles registered after that date are now required to pay it.

Which cars are exempt from road tax in the UK?

In certain situations, vehicles may be exempt from road tax. This applies, among others, if:

the vehicle is used by a disabled person entitled to the exemption;
the vehicle is used to transport disabled people;
the vehicle is used solely for purposes related to agriculture, horticulture or forestry;
the vehicle is officially taken off the road;
the vehicle was manufactured before 1 January 1985.

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