Drivers of one of UK's most popular cars to be hit by huge tax hike

It would make them the third largest car maker by sales, according to an announcement issued today (December 23).
-Credit:Reach Publishing Services Limited


Owners of one of the UK's biggest-selling cars are being warned to brace themselves for a huge vehicle tax hike this year. The Tesla Model 3 is fast becoming one of the most popular models on our roads and is a common choice for those looking to switch to electric.

But as the Model 3 is an electric vehicle (EV), it will be subject to a massive tax increase from April under new motoring laws. EVs will be subject to the same basic rate tax as petrol and diesel models for the first time, removing a perk owners of electrics have enjoyed for years.

Drivers will now have to stump up £195. The Government says the move will make the vehicle tax system fairer for all. The Tesla Model 3 was named on a new list of the fastest-selling cars of 2024.

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Motoring experts at BigWantsYourCar.com said: "The Tesla Model 3 stands out as a surprising entry on this list, combining cutting-edge electric technology with sleek design and impressive performance. Buyers looking for a sustainable yet luxurious option have driven demand for this model, making it one of the fastest-selling cars in the UK.

"The Tesla Model 3 represents the future of motoring, with its blend of innovation and sustainability. Its ability to sell in just 31 days is a clear sign of the growing interest in premium electric vehicles.” The Government says of the tax changes: "From April 1, 2025, registered keepers of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles.

"This change will apply to both new and existing vehicles. This new measure removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable."