UK Road Tax Hike 2025: EVs Face £2,050 Charge; High-Emission Cars' Fees Double to £5,490

British motorists face a sweeping transformation of Vehicle Excise Duty (VED) from April 1, 2025, with tax rates doubling for many vehicles and electric car owners losing their tax-free status. These changes will hit high-emission vehicles hardest while introducing new fees for previously exempt electric vehicles.

Double Trouble: First-Year Rate Increases

According to research by car trader Dick Lovett, first-year road tax will double for all new cars emitting 76g/km or more of CO2. The impact will be particularly severe for luxury vehicles with emissions above 256g/km, where first-year costs will jump from £2,745 to £5,490—a staggering £2,745 increase.

Ultra-low emission vehicles (ULEVs) won’t escape the changes either:

Cars emitting 1-50g/km CO2 will see first-year tax soar from £10 to £110 (1000% increase)

Vehicles in the 51-75g/km range face a 333% hike, from £30 to £130

Electric Vehicles Lose Their Free Ride

For the first time, electric vehicle owners will pay road tax. Since April 1, all EVs will now be subject to vehicle tax. This fulfills former Conservative Chancellor Jeremy Hunt’s 2022 pledge that all drivers should “pay a fair share to use the roads.”

The Expensive Car Supplement (ECS) will also apply to EVs priced over £40,000, adding £410 annually for five years starting in the second year of ownership. This creates a potential additional cost of £2,050 for premium EV owners.

Paul Barker, editor of Auto Express, notes: “Auto Express estimates that seven in ten battery cars registered in the UK are priced above £40k and therefore eligible to be levied with the ECS.”

A Loophole to Save on New Charges

Savvy EV owners can delay these charges by acting quickly. Barker reveals: “A foible of the system means owners can opt to reset their annual renewal date to this month, even if they’ve still got weeks or months of their existing car tax left to run.”

This timing trick allows EV owners to postpone paying the new standard charge for up to a year, providing temporary relief from the coming changes.

Band	CO2 (g/Km)	2024/25 Tax	2025/26 Tax	Increase
A	0	£0	£10	+£10
B	1-50	£10	£110	+£100
C	51-75	£30	£130	+£100
D	76-90	£135	£270	+£135
E	91-100	£175	£350	+£175
F	101-110	£195	£390	+£195
G	111-130	£220	£440	+£220
H	131-150	£270	£540	+£270
I	151-170	£680	£1,360	+£680
J	171-190	£1,095	£2,190	+£1,095
K	191-225	£1,650	£3,300	+£1,650
L	226-255	£2,340	£4,680	+£2,340
M	256+	£2,745	£5,490	+£2,745

Looking Ahead

While the government acknowledged the “disproportionate impact” of the ECS on electric vehicle buyers in the Autumn Budget, no immediate relief was announced. The threshold might be raised at “a future fiscal event,” possibly in the Chancellor’s upcoming March 26 Spring Statement.

The DVLA collects approximately £5 billion annually from VED, but this money is pooled with other taxes, meaning it can be used for things like education or healthcare, not just roads.

These changes reflect the government’s dual aims of maintaining tax revenue while transitioning toward lower-emission vehicles, though critics argue the timing may slow EV adoption just as the market is gaining momentum.

FAQs

How much will car tax increase in April 2025?

First-year road tax for vehicles emitting 76g/km or more of CO2 will double. Cars emitting 1-50g/km will see rates jump from £10 to £110 (1000% increase), while those in the 51-75g/km range will rise from £30 to £130 (333% increase). The most polluting vehicles (over 256g/km) will face first-year costs of £5,490, up from £2,745.

Will electric vehicles have to pay road tax from April 2025?

Yes, electric vehicles will lose their tax-exempt status and will be subject to vehicle tax. Additionally, EVs priced over £40,000 will face the Expensive Car Supplement of £410 annually for five years starting from the second year of ownership.

Can I avoid the new car tax rates?

Current EV owners can delay paying the new standard charge for up to a year by renewing their tax now, even if they have months remaining on their current tax period. This effectively resets the annual renewal date and postpones the impact of the new rates.

What is the Expensive Car Supplement and who pays it?

The Expensive Car Supplement (ECS) is an additional £410 annual charge applied to vehicles with a list price over £40,000. It’s paid for five years from the second to sixth year after registration. Previously, electric vehicles were exempt, but from April 1, 2025, the ECS will apply to EVs as well. According to Auto Express, about 70% of battery cars in the UK are priced above £40,000 and will be affected.

Are there any plans to change the £40,000 threshold for the Expensive Car Supplement?

The government has recognized the “disproportionate impact” of the ECS on electric vehicle buyers but ruled out immediate changes. They indicated they would consider raising the threshold “only at a future fiscal event,” possibly in the Chancellor’s Spring Statement on March 26, 2025.

Does all the money from car tax go toward road improvements?

No. While the DVLA collects approximately £5 billion annually from Vehicle Excise Duty (VED), this revenue isn’t exclusively used for roads. The money is pooled with other taxes and can fund various public services including healthcare and education.

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