Drivers have been given just weeks to prepare for major car tax changes which could result in British motorists paying as much as £5,490 to keep their cars on the road.
From April 1, a range of new car tax changes will be introduced following an announcement from Chancellor Rachel Reeves in a bid to dissuade motorists from buying new petrol and diesel vehicles.
Motorists have been told that car taxes will be hiked from April, with drivers looking to upgrade their cars and buy a new model being warned of paying thousands of pounds extra every year.
First year Vehicle Excise Duty (VED) rates for new cars registered on or after April 1, 2025, will be changed to incentivise the purchase of new zero emission vehicles.
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The new car tax launching in April could see drivers slapped with enormous fees
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Zero emission cars will pay just £10 until 2029-2030 for their first year rate, while cars emitting between 1-50g of CO2 per kilometre, including hybrid vehicles, will increase to £110 for 2025-26.
Rates for cars emitting 51-75g/km will increase to £130 and all other rates for cars emitting 76/km and above will double from their current level for 2025-26.
In 2024, the best-selling vehicle on the UK market was the Ford Puma, with 48,340 models sold, narrowly beating out the Kia Sportage (47,163).
The entry-level Ford Puma EcoBoost Hybrid from £26,350 has an overall emissions output of 121g of CO2 per kilometre, meaning drivers could face a huge hike in overall costs.
Since it is over the 75g/km threshold the Government set out, drivers who purchase this vehicle in the new financial year will see the tax rise from £220 to £440.
Drivers of luxury vehicles could face even higher costs. A new Range Rover purchased this month could set drivers back around £2,745 in taxes for the first 12 months.
This could spiral to £5,490 from April, potentially leading to motorists avoiding the most polluting petrol and diesel vehicles on the market.
Drivers will also still be impacted by the Expensive Car Supplement despite the Government saying that it recognised the "disproportionate impact".
It stated that it would consider raising the threshold for zero emission cars only at a future fiscal event to help make it easier for motorists to buy electric vehicles.
Experts have been calling on drivers to be aware of the changes being introduced in under two months, with the DVLA taking to social media to warn motorists of the upcoming changes.
Speaking during the October Budget, Chancellor Rachel Reeves said: "Madame Deputy Speaker, we want to support the take-up of electric vehicles.
"So I will maintain incentives for electric vehicles in Company Car Tax from 2028 and increase the differential between fully electric and other vehicles in the first year rates of Vehicle Excise Duty from April 2025.
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Rachel Reeves said car tax changes were being made to incentivise people to buy EVs PA"These measures will raise around £400million by the end of the forecast period."
She added that the Government would support the electric vehicle industry and develop manufacturing bases in the North East and West Midlands with £2billion for the automotive sector.
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