Vehicle tax rate increase 2025 explained

74Dazza

Hi, Ive been looking at the on line DVLA website for tax rates for 2025 and can honestly say I cannot 100% say I know how much I will be paying and the amounts shown are very concerning. Can any one tell me what I will be paying for a 2013 VW transporter van co2 of 211 g/km

Mildly_Miffed

It's going up by inflation. No more than that. Same as it has done for years.

The big changes are for NEW cars only.

https://www.gov.uk/government/publications/vehicle-excise-duty-rates-for-cars-vans-and-motorcycles-from-1-april-2025
"This measure will uprate the Vehicle Excise Duty rates for cars (excluding first year rates) and all other rates for vans, motorcycles and motorcycle trade licences by the Retail Price Index"

Ectophile

Mildly_Miffed said:

The big changes are for NEW cars only.

And electric vehicles registered in the last few years.

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Another big change is zero VED cars registered between 2001-2017 will go to the lowest emission band rate, currently £10 (if you consider going from nothing to likely £15 a big change)

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Mildly_Miffed said:

https://www.gov.uk/government/publications/vehicle-excise-duty-rates-for-cars-vans-and-motorcycles-from-1-april-2025
"This measure will uprate the Vehicle Excise Duty rates for cars (excluding first year rates) and all other rates for vans, motorcycles and motorcycle trade licences by the Retail Price Index"

Interesting, the paper says there will be zero impact on the exchequer!

Presumably, the number of EVs that will start paying tax in 2025* (and all those extra £15s) will exactly balance the number of vehicles that were paying tax that are scrapped, and so on for 2026*....... (rather than someone at HMG can't do sums )

*A significant number of EVs will defer the change to 2026 by "taxing" before April 1st, and there will be the new registrations from 2025 that go up to £195 or whatever from the first year £10

stuart_b

I have a 2004 car which will be going up from ~£400 to ~£700, so the above comments won't be true for everyone.

As it only did 309 miles last year that's a pretty big per mile jump!  Enough to make sure I tax it early after the winter. 

Got to be worth SORNing and then taxing in March for some. 5 days off the road to save £300.

Mildly_Miffed

stuart_b said:

I have a 2004 car which will be going up from ~£400 to ~£700

No, you don't. The two top bands above K aren't being backdated from their 2006 introduction.

Stevieb1988

Could someone please advise on the below.

I want to buy a second hand car which is a 2018 plate. The cars value when new was over 40,000.

Will I have to pay the extra £410 premium car tax or as the car is now older than 5 years and i will be the 3rd owner.

Thanks 

Mildly_Miffed

Stevieb1988 said:

Could someone please advise on the below.

I want to buy a second hand car which is a 2018 plate. The cars value when new was over 40,000.

Will I have to pay the extra £410 premium car tax or as the car is now older than 5 years and i will be the 3rd owner.

Number of owners makes no difference.

2018 is (a lot) more than 5 yrs ago.

400ixl

Its actually the 6th anniversary of when it was first registered (years 2-6) that gets charged the premium tax rate.

As per your other post, a 2018 car will be past its 6th anniversary so will not be subject to the premium car tax.