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Car tax changes and what they mean for drivers

  • Rachel Reeves announced new car tax measures that start on April 1, impacting millions of drivers who are unaware of the changes.
  • Research shows that 21.2 million drivers are uninformed about the new Vehicle Excise Duty rates, which could lead to an additional £83.5 million in tax payments.
  • The first-year tax for newly registered electric vehicles will be £10, while rates for higher emission vehicles will increase substantially, with some cars facing taxes up to £5,490.
  • Tom Banks advises drivers to consider low-emission cars to avoid hefty tax hikes under the new laws coming into effect.
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Your Money broke the news in on Monday, March 31, 2025.
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