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UK car tax rates from April 2025 and how it affects petrol, diesel & hybrid vehicles

UK car tax rates from April 2025 and how it affects petrol, diesel & hybrid vehicles

Video by Go Green Autos via YouTube
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On the 30th October 2024, Rachel Reeves delivered her first budget for the new UK Labour Government. In this budget were changes to the vehicle excise duty (more commonly called "road tax" or "car tax") to encourage the shift to electric vehicles by doubling the new rates on new petrol and diesel cars in their first year. However, much detail was missing so are they trying to hide the actual price increases? Even now at the end of the year, the DVLA still hasn’t published the new rates from April 2025.
In this video I go through the changes and how it affects owners of petrol, diesel and hybrid cars and those looking to buy a new car in 2025.
The Government’s aim is to encourage the update of EVs or low emission vehicles. I agree with that view, but not in their methods. The new rates of tax on higher polluting petrol and diesel vehicles is just ridiculous, especially when there are not yet EV alternatives available for some of these vehicles. For example, heaving towing, off-road vehicles etc.
DVLA document https://www.gov.uk/guidance/vehicle-tax-for-electric-and-low-emissions-vehicles
DVLA current rates https://www.gov.uk/vehicle-tax-rate-tables
This video was filmed on 1st January 2025.

Update: I apologise as I’ve made a mistake in this video with the expensive car supplement. Currently it is £190+£410=£600 for £40K+ vehicles. The DVLA document was showing £600 for the luxury car supplement but I didn’t realise this was already including the standard rate VED. So the new rate for £40K+ vehicles from year 2-6 will be £605 (or slightly more if they increase the supplement by RPI), not £795.

If you’re thinking about buying a new Tesla, use https://ts.la/matt55592 or enter "matt55592" as a referral code for a discount of your purchase. A new Tesla Model 3 RWD is below the threshold of the "luxury vehicle supplement" and therefore will only be £10 to tax!

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Chapters/timestamps:
00:00 Recent video on EV road tax
00:43 New rates of oldest ICE vehicles (up to 2001)
01:03 New rates for 2001-2017 ICE cars
01:44 New rates for 2017+ ICE cars
02:08 Rates for new cars from April 2025
03:05 Worst case scenario
03:45 Taxation system is a mess!
04:28 Please comment

#gogreenautos #gogreenautosuk #electricvehicles #netzero

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