Following a rise in road tax, British drivers may be contemplating selling their vehicles. As of April 1, the DVLA has increased the tax payable by millions of motorists, including an increase in the standard rate and the removal of the tax exemption for electric vehicles (EVs).

Tax increases have also been implemented for low-emission vehicles, while the first-year rates for new cars with higher emissions have doubled. The suggests that these new tax rates could result in the average UK car paying over £650 annually in fuel duty and road tax.

The new standard annual road tax rate has risen from £190 to £195 and applies to all cars - including EVs - first registered between April 1, 2017, and March 31, 2025. New EVs registered from April 1, 2025, will be taxed £10 in the first year - known as the 'showroom tax' - while those with a list price exceeding £40,000 will also be subject to the 'expensive car supplement'.

These high-value cars are now required to pay an additional £425 per year between the second and sixth years of ownership. However, all EVs registered before March 31, 2017, will pay a lower annual rate of £20.

The new regulations also impact low-emission vehicles, with those emitting between one and 50 g/km of CO2 now subject to a £110 tax rate. Prior to the changes, hybrid cars in this band - which includes most plug-in hybrids - paid no road tax in the first year, while petrol and diesel cars in the same band paid £10, reports

The cost of first-year road tax for new cars has seen a significant hike, with vehicles emitting 51-75 g/km now subject to a £135 fee, a substantial increase from the previous £20 for hybrids and £30 for petrol and diesel cars. The rate for more polluting new cars, those emitting 76g/km or above, has doubled.

Consequently, owners of new cars in the highest emission band of 255g/km or more will now be hit with a hefty £5,490 road tax bill in their first year. This change affects 59 new models from 24 car manufacturers, including luxury vehicles like Bentley's Continental W12, Porsche's 911 Turbo, and Land Rover's Defender V8.

For those with cars first registered from March 1, 2001, checker to determine the vehicle's emissions level and calculate the impending car tax. Richard Evans, head of technical services at Webuyanycar, commented on the changes, describing them as a 'pivotal shift' for British drivers.

He stated: "The most recent DVLA tax changes mark a pivotal shift for British motorists, particularly for EV owners, who are now facing road tax for the first time. Whilst these changes may well cause British drivers to reconsider their vehicle choices, it is difficult to predict exactly how it will impact people's decision to sell their current vehicles as despite the changes and increases across the board, EV drivers still have the most favourable road tax rates.

"One thing we do know is that since these changes took effect on April 1, owners of EVs first registered before April 2017 now have the cheapest annual road tax rate of all at £20. This makes older EVs an attractive option for budget used car buyers looking to save on running costs.

"Meanwhile, road tax rates for cars producing over 76 g/km of CO2 have doubled, so, if you buy a new luxury or performance car in the highest emissions band, you'll now face a £5,490 first-year road tax bill. Therefore, if ownership costs are a concern, it pays to opt for a greener motor."

The new annual standard rate for road tax has increased from £190 to £195. This applies to vehicles first registered after April 1, 2017, and before March 31, 2025. The road tax exemption for EVs has ended. New EVs registered from April 1 will be taxed £10 in the first year, known as the 'showroom tax'.

EVs registered between April 1, 2017, and March 31, 2025, will pay the new standard rate of £195 per year. Those registered before March 31, 2017, benefit from a lower annual rate of £20.

The £10 discount on the standard rate road tax for alternative fuel vehicles, which includes hybrid, bioethanol and liquefied petroleum gas (LPG) cars, has been discontinued. Those affected are now subject to the new standard annual rate of £195.

In terms of electric vans, they will be taxed at an annual rate of £355, the same as petrol and diesel light goods vehicles. Any electric vehicles registered with a list price over £40,000 will also incur an additional £425 per year between the second and sixth years of ownership, known as the 'expensive car supplement'.

First-year rates for higher-polluting new cars have doubled. Cars in all other road tax bands, those emitting 76g/km or more, are now subject to this increase.

New cars in the highest band, those emitting 255g/km or more, will now face a first-year tax of £5,490. This top rate will impact 59 new models from 24 car manufacturers, including the Bentley Continental W12, Porsche 911 Turbo and Land Rover Defender V8.

Tax increases have also been implemented for low-emission vehicles. First-year road tax rates for low-emission vehicles that emit between 1 and 50g/km of CO2 is now £110.

Previously, hybrid cars in this band, including most plug-in hybrids, paid no road tax in their first year, while petrol and diesel cars in the same band paid £10. The first-year road tax for new cars emitting 51-75g/km is now £135, up from £20 for hybrids and £30 for petrol and diesel cars.

Vehicles with SORN status. Vehicles declared as SORN (Statutory Off-road Notification) are exempt from paying road tax for that specific vehicle. Additionally, they may be eligible for a road tax refund from the DVLA if they have any full months' tax remaining.

Classic cars. Typically, cars that are more than 40 years old can qualify for road tax exemption, but this is not automatic. Drivers must apply once their car meets the eligibility criteria.

Drivers with disabilities. Drivers who receive certain benefits can apply for exemption from road tax.

  • 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 .
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