The UK’s Vehicle Excise Duty (VED), commonly known as road tax, is set for a major shake-up starting April 1, 2025. Whether you drive a petrol, diesel, hybrid, or electric vehicle, these changes will likely affect you.

One of the biggest updates is that electric vehicles (EVs) will no longer be exempt from VED. Currently, EVs pay no road tax, but from 2025, they’ll be subject to the same charges as petrol and diesel cars, starting at £165 per year for standard models. Additionally, new EVs costing over £40,000 will face the luxury car tax, adding another £355 per year for the first five years.

For petrol and diesel drivers, VED rates will continue to rise in line with inflation. The tax bands are still based on CO₂ emissions, meaning the more polluting your vehicle, the more you'll pay.

If you’re considering switching to an EV, now is the time to do your research. While running costs remain lower than traditional vehicles, the tax advantage is shrinking. Keep an eye on official government updates to stay informed and check out the latest information here https://www.gov.uk/guidance/vehicle-tax-for-electric-and-low-emissions-vehicles