2025 VED Road Tax Cost Changes

Understanding car tax in the UK can often feel overwhelming, especially with frequent updates and evolving regulations. However, staying informed about the upcoming 2025 changes to Vehicle Excise Duty (VED) can help you make cost-effective decisions—particularly if you're considering an electric vehicle (EV) before April 1, 2025.


Key Benefits Before April 2025:

If you're thinking about switching to a Battery Electric Vehicle (BEV), now is the perfect time to act. Until April 1, 2025, BEVs remain exempt from paying any VED or car tax, offering significant savings for environmentally conscious drivers. From April onwards, however, new VED charges will apply to electric cars for the first time, including:

  • £10 First-Year Rate for EVs (rising from £0).
  • £190 Standard Annual Rate for EVs starting in year two.
  • Additional £410 Annual Premium Car Tax for vehicles with a list price exceeding £40,000 (applies for five years starting from the second year of registration).

Purchasing a BEV now allows you to enjoy tax-free motoring until the new regulations come into effect.


What Are the 2025 Changes?

From April 2025, the following updates will apply to VED:

  1. EVs Join the Tax Bracket
    • EVs will no longer be exempt from VED, aligning them with other vehicles for the first time.
  2. First-Year Rates Increase for Low-Emission Vehicles
    • Plug-in hybrids (1-50g/km CO2) will see their first-year rate jump from £10 to £110.
    • Vehicles emitting 51-75g/km CO2 will rise from £30 to £130.
  3. Doubling First-Year Rates for Most Cars
    • Cars emitting over 76g/km CO2 will face double the current first-year rates, significantly impacting petrol and diesel buyers.

Standard Rates and Premium Fees in 2025

  • Flat Rate for Most Cars: £190 per year for vehicles registered after April 2017.
  • Discount for Hybrids: Hybrids will continue to enjoy a £10 discount on the standard rate.
  • Premium Vehicle Surcharge: An additional £410 annual fee applies to cars with a list price over £40,000.

Why Act Now?

The introduction of VED charges for BEVs reflects the government's commitment to phasing out traditional internal combustion engine vehicles and promoting a shift to zero-emission driving. While EVs will remain cheaper to tax than petrol or diesel vehicles, buying an electric car before April 1, 2025, allows you to secure zero VED costs during the transition period.


Still Confused?

At Drift Bridge Group, we're here to simplify your car ownership journey. Visit our showrooms to explore our range of zero-emission vehicles and learn how you can make the most of the current VED rules before the 2025 changes take effect.

View Our 0 emission vehicles here