Drivers warned these cars will lose tax-free status in 2025
Drivers who have been able to enjoy not having to pay road tax have been told to prepare for big changes in 2025. Cars registered before April 2017 are ranked in bands ranging from A to M based on the CO2 emissions they pump into the air.
Those with band A motors are currently exempt from paying tax because of how environmentally friendly they are. But these rules are being scrapped from April.
It's also the case for electric vehicles and owners will have to pay tax for the first time. It may come as a nasty shock to these drivers, particularly as they may have chosen them with the tax breaks in mind.
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The Government is bringing electric and low-emission cars into line with petrol and diesel ones and everyone will have to pay tax. Bands will remain, through A is effectively being scrapped and cars being shifted up to band B.
Ministers want to make more money from road tax and are aware the number of electric cars in the UK continues to grow by the year. If changes are not made, tax receipts will gradually decline as more motorists ditch petrol and diesel for electric.
Motoring firm cinch explained: "Any car registered between May 2001 and April 2017 is placed into bands that range from A to M, which are based on CO2 emissions. Cars in band A (meaning their CO2 emissions are lower than 100g/km) are exempt from road tax.
"You need to be quick to make the most of this, though. Band A is effectively being removed on April 1, 2025, so all cars currently in band A will move to band B and are eligible for road tax from that date onwards.
"On April 1 2025, electric vehicles (EVs) will also have to pay road tax for the first time. Currently, those with EVs can enjoy free road tax because no exhaust emissions are produced. The only exception is when a car is worth over £40,000, with drivers paying an additional luxury car fee of £410 for the first five years."
Sam Sheehan, motoring editor cinch, said: “The appeal of having no road tax to pay has been a draw for drivers looking to switch to EVs in recent years. However, while the 2025 VED changes will mean running an EV will become slightly more expensive, they’re still likely to be cheaper to run than a diesel or petrol car when fuel costs are factored in.”