Warning over HUGE car tax hike for millions of Brits as rule change being rolled out in just weeks – are you exempt?
MILLIONS of Brits have been warned over a huge car tax hike to be rolled out in just weeks.
Electric vehicles (EVs) will lose a 10-year-long exemption from April this year.
Over the past decade, EV owners have been exempt from Vehicle Exercise Duty (VED) charges, also known as road tax – along with first-year charges.
In a matter of weeks, they will be forced to pay standard VED rates, at £195 a year, according to EVA England.
However, they can still access huge first-year tax discounts – with VED bills to stand at £10.
EVA England said this is to “ensure that the tax system remains fair and sustainable” as more people switch to EVs.
Soon, they will be aligned with traditional vehicles regarding standard rates, such as initial tariffs and the Expensive Car Supplement (ECS).
The organisation said: “Vehicle tax is changing for electric and low emission vehicles from 1 April 2025.
“Drivers will need to pay vehicle tax in the same way as those of petrol and diesel vehicles.
“This will apply to both new and existing vehicles.”
“MORE TO COME”
First-year car tax rates are also set to rise.
Plus, diesel buyers will face an average increase of £1,114 – more than double the £503 rise for petrol drivers.
Hybrid owners will pay between £135 and £327 extra, depending on the specific model they buy.
It comes after Chancellor Rachel Reeves made some adjustments to the VED tax bands in her Autumn Budget.
Ms Reeves said she was making the changes to “strengthen incentives to purchase zero-emission and electric cars” by making it more expensive to drive petrol or diesel models.
Under the bands, cars are categorised based on their C02 emissions, measured in grams per kilometre.
With the new rates, the most polluting vehicles producing over 255g/km will see a whopping £2,745 increase from £2,745 to £5,490 – a hike of 100 per cent.