New VED car tax bands for 2025 from DVLA mean drivers face £600 charge
Vehicle tax is changing for electric and low emission vehicles from 1 April 2025, the DVLA has warned. From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.
This new measure effectively 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. The DVLA has explained the new bands in full.
EVs registered on or after 1 April 2025 will need to pay the lowest first year rate of vehicle tax (which applies to vehicles with CO2 emissions 1 to 50g/km). From the second tax payment onwards, these vehicles will pay the standard rate.
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This is £190 for 2024 but is subject to change for 2025. Cars registered between 1 April 2017 and 31 March 2025 will pay the standard rate. This is £190 for 2024 but is subject to change for 2025, the DVLA has gone on to confirm on its website.
Electric and low emission cars registered between 1 March 2001 and 31 March 2017 will move to the first band that has a VED value. This is £20 for 2024 but is subject to change for 2025. For hybrid and alternatively fuelled vehicles (AFVs), t he £10 annual discount for hybrid and AFVs will be removed, and the rate you will pay will depend on when the vehicle was first registered.
For new electric vehicles with a list price exceeding £40,000, you will now need to pay the expensive car supplement from the second tax payment onwards. This applies to vehicles registered on or after 1 April 2025. The £410 surcharge for expensive cars will be added to the £190 fee drivers and paying depending on the year their car was made.