How to check if your car is impacted by new tax increase as drivers warned

The AA has issued a warning to drivers about a potential £150 tax hike due to the DVLA's latest regulations. Starting from April 1, 2025, changes in vehicle excise duty (VED) for both standard rate vehicles and electric vehicles (EVs) will see many UK motorists shelling out more for road use annually.

On average, that the typical driver could face over £650 per year in combined fuel duty and road tax expenses. Government figures indicate that approximately 58% of drivers in the UK are still on the older CO2-based emissions road tax system, while the new 'standard rate' kicks off at £195 for cars registered post-2017.

According to owners of small and family cars who currently benefit from lower road tax rates are in for a significant financial hit upon upgrading to newer models. Jack Cousens, head of roads policy at The AA, commented: "VED changes and future increases threaten a major financial shock to the finances of millions of car owners whose vehicles are still paying VED under the 2001-2017 CO2-banded system."

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Motorists are bracing for a significant hit to their wallets as new Vehicle Excise Duty (VED) rates come into play. "For those with ageing low-CO2 small family and city cars, the transition to the current standard VED rate could see a hike of £150 or more a year on their motoring tax. With the average car currently paying £436.84 in fuel duty a year – or £524.21 when VAT is added at the pump – a £150 increase in the VED they will pay represents a 34% hike (29% with VAT) on top of what they are paying in fuel duty."

In a move that's sure to ruffle feathers, even eco-friendly EV drivers aren't safe from the taxman's grasp anymore. New EVs registered after March 31 will be slapped with road tax from April 1, reports .

It's a new era for all EVs registered between April 1, 2017, and March 31, 2025, which will now face a standard rate road tax of £195 annually. Those who got their EVs before March 31, 2017, can breathe a slight sigh of relief with a lower annual rate of £20.

EV owners had a shot at dodging the tax bullet for another year, but that chance has now vanished.

Curious about how these changes will dent your budget?

The DVLA's April 1 alterations can be checked Pop in your number plate registration to find out your CO2 emissions and the amount of car tax you'll need to fork out in the future.

Full list of tax changes from April 1

New standard road tax rate

The standard road tax rate will rise from £190 to £195 annually. This will apply to all cars first registered between April 1, 2017, and March 31, 2025.

Tax increases for low-emission vehicles

First-year road tax for low-emission vehicles producing between 1 and 50g/km of CO2 will increase to £110. Until this takes effect, hybrid cars in this band – which includes most plug-in hybrids – pay no road tax in the first year, while petrol and diesel cars in the same band pay £10.

First-year road tax for new cars emitting 51-75g/km will increase to £135. The previous rate for cars in this band was £20 for hybrids and £30 for petrol and diesel cars.

New taxes for EVs

Road tax exemption for all EVs will end when the new rules take effect on April 1. New EVs registered from this date will be taxed £10 in the first year – known as the “showroom tax”.

Any EVs registered with a list price exceeding £40,000 will be subject to the “expensive car supplement” – an additional £425 per year between the second and sixth years of ownership. EVs registered between April 1, 2017, and March 31, 2025, will be required to pay the new standard rate road tax of £195 per year.

However, all EVs registered before March 31, 2017, will benefit from a lower annual rate of £20. The £10 annual discount on the standard rate road tax for alternative fuel vehicles – including hybrid, bioethanol and liquefied petroleum gas (LPG) cars – will be discontinued from April 1.

This means affected drivers will have to pay the new standard £195 annual rate. Electric vans will also be taxed at an annual rate of £355 – the same rate applied to petrol and diesel light goods vehicles.

Doubling first-year rates for higher-polluting new cars

The first-year rate for cars in all other road tax bands (producing 76g/km or more) will double. This means new cars in the highest band (those producing 255g/km or more) will be subject to a £5,490 tax in the first year.

The top rate will affect 59 new models from 24 car manufacturers, including the Bentley Continental W12, Porsche 911 Turbo and Land Rover Defender V8.

Car tax exemptions

From April 1, road tax exemption for EVs will end, with drivers required to pay the new standard annual rate of £195. However, some drivers may still be exempt from road tax:

SORN cars

Drivers who make a SORN (Statutory Off-road Notification) for their vehicle will no longer be required to pay road tax for that vehicle. They will also be eligible for a road tax refund from the DVLA if they have any full months’ car tax remaining.

Drivers with disabilities

Drivers can apply for exemption from road tax if in receipt of:

• The higher rate mobility component of Disability Living Allowance
• The higher rate mobility component of Child Disability Payment
• The enhanced rate mobility component of Personal Independence Payment (PIP)
• The enhanced rate mobility component of Adult Disability Payment (ADP)
• Armed Forces Independence Payment
• War Pensioners’ Mobility Supplement
• Drivers can also apply for a 50% vehicle tax reduction if they receive the standard rate mobility component of PIP or the enhanced rate mobility component of ADP. For more information, visit Gov.uk’s ‘Financial help if you’re disabled’ section .