The Driver and Vehicle Licensing Agency (DVLA) is warning drivers of significant car tax changes that could see costs escalate by up to £600 in the near future. Taking to social media platform X, the DVLA urged drivers to pay attention to upcoming changes in vehicle tax rules.
According to their statement: “Vehicle tax is changing for electric and low emission vehicles from 1 April 2025.”
New zero-emission vehicles, mostly EVs, will face a £10 tax charge for their initial year starting April 1 next year. Subsequently, EV tax rates will be aligned with those established for other cars registered post-April 2017, which currently stands at £190 annually but this figure may increase.
Furthermore, EVs that are valued over £40,000 will incur the ‘expensive car supplement,’ which at present amounts to £410 per annum and lasts for five years after registration, bumping up the total annual tax cost to a hefty £600, reports Birmingham Live.
The government will also adjust the tax rate for new electric vans to match the amount levied on petrol and diesel variants, currently priced at £335 each year.
In a sweeping change set to take effect from April 1, 2025, cars registered between March 1, 2001, and March 31, 2017, which produce less than 99g/km of CO2 will be subject to Vehicle Excise Duty (VED) for the first time, with an annual charge of £20.
The announcement made by then Chancellor Jeremy Hunt from the Conservative Party included: “To make our motoring tax system fairer, I’ve decided that electric vehicles will no longer be exempt from vehicle excise duty.”