Under new Government changes set to take effect from April, some of the most popular family cars on UK roads will be hit with significant tax increases. The first-year tax charges for cars emitting 76 to 90g/km will double, jumping from £135 to a hefty £270, as announced by the Labour Government.
This emissions category includes popular models such as the Ford Mondeo, Peugeot 308, Volvo V40, Mini Hatch, Ford Focus Estate, BMW 1 Series and Volkswagen Golf. The increased charge applies to new cars in their first year of registration, meaning only owners of new models will be affected.
After the first year, the tax amount reverts to the standard annual rate, currently set at £190, although the Government has indicated this may be “subject to change”. New cars are categorised based on their emission levels, which determines the amount owners must pay in their first year after registration.
From April, owners of electric vehicles will also be required to pay road tax for the first time. The Government explained: “Vehicle Excise Duty first-year rates are paid for the first year of a car’s lifecycle, at the point of registration, and vary based on emissions. From April 1, 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars.”
“From April 1, 2025, zero-emission cars will pay the lowest first-year rate. Rates for cars with CO2 emissions of 1 to 50 grams per kilometre and 51 to 75 grams per kilometre, including hybrid vehicles, will increase to bring them closer to higher emitting cars. Cars in the bands for CO2 emissions of 76 to 90 grams per kilometre and above will pay double the equivalent rates from 2024 to 2025.”, reports Birmingham Live.
It continued: “The Government is committed to supporting the transition to electric vehicles. This change will increase the incentives towards new zero-emission cars at the point of purchase, and support take-up of new electric vehicles, which is crucial to achieving Net Zero. Revenue from this change will also help support public services and infrastructure across the UK.”
