UK car tax increases to impact petrol, diesel owners

Motorists in the UK will face higher Vehicle Excise Duty (VED) car taxes starting April 1, 2025. This change will affect petrol, diesel, and electric vehicle owners. Many drivers have just weeks to prepare for the new rates. The first-year tax rates will see significant increases, particularly for the most polluting vehicles. Cars that emit over 75g/km of CO2 will have their first-year VED rates doubled. For example, owners of petrol and diesel cars emitting over 255g/km of CO2 will see their fees jump from £2,745 to £5,490. Cars emitting between 226 and 255g/km of CO2 will see their tax rise from £2,340 to £4,680. Those producing between 191 and 225g/km will now be charged £3,300, up from £1,650. The government aims to promote zero-emission electric and hybrid vehicles by increasing the cost for higher-emission cars. HM Revenue and Customs (HMRC) stated that these tax adjustments aim to widen the cost gap between electric and traditional combustion engine cars.