Drivers with certain petrol and diesel vehicles were hit with major tax changes from April 2025 onwards
Petrol and diesel drivers have been hit with a massive ‘ten-fold’ car tax hike in 2025, in a blow for UK motorists.
Owners of certain combustion engines were hit with substantial increases back in April as sweeping changes to Vehicle Excise Duty (VED) charges took effect.
VED charges are worked out based on how much a vehicle pollutes, meaning the dirtiest motors typically face the biggest bills. But some of the cleanest combustion cars – those pumping out between just 1 and 50g/km of CO2 – were saw some of the most brutal rises.
Many plug-in hybrid models also got caught up, with bills rocketing from just £10 to more than £100, reports the Express.
The RAC sounded the alarm about these changes earlier this spring, and now drivers ae feeling the effects.
The RAC said: “The biggest news is the ten-fold increase in first-year car tax rates for cars emitting between 1-50g/km of CO2, which includes hybrids.
“These will increase from the current rate of £10 for petrol and diesel cars (or zero for hybrids) to £110. The vast majority of plug-in hybrid cars fall into this band.
“Rates for new cars emitting between 51-75g/km of CO2 will increase from £30 (or £20 for hybrids) to £135.”
Massive jumps in first-year VED rates formed the backbone of the overnment’s car tax shake-up during the Spring..
In other cases charges doubled outright, forcing road users to shell out thousands more just to keep their cars on the tarmac. Vehicles producing more than 255g/km of CO2 will now face £5,490 in first-year VED charges, a substantial jump from the previous annual rate of £2,745.
Similarly, heavily polluting cars generating between 226 and 255g/km will witness charges surge from £2,340 to £4,680.
Experts at Pete Barden said: “Starting from April 1, 2025, the UK’s Vehicle Excise Duty (VED) rates for new cars are set for a major overhaul, with significant increases in first-year rates for certain vehicle emissions categories.
“The government explains these changes as a way to “strengthen incentives” for choosing zero-emission and electric vehicles by expanding the cost differences between electric, hybrid, and internal combustion engine (ICE) vehicles.”
