New car tax changes are being introduced today, which could see British drivers slapped with enormous costs for buying new petrol and diesel vehicles.
Chancellor Rachel Reeves introduced new first year Vehicle Excise Duty rates during the Autumn Statement in October, alongside several other car tax changes. The new changes apply from today, Tuesday, April 1, 2025.
The MP for Leeds West and Pudsey noted that the change was being made to "strengthen incentives" to help Britons to purchase electric cars and other zero emission vehicles.
She added that it would "widen the differentials" between electric cars, hybrids and low emission vehicles and traditional internal combustion engine (ICE) vehicles.
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Chancellor Rachel Reeves announced the changes to first year tax rates last October
PA
First year rates are calculated based on the emissions output of new vehicles, with people looking to get their hands on new petrol and diesel vehicles paying more than if they chose an EV or hybrid.
Drivers are required to pay the first year rate when the car is registered, before paying a different rate after the first 12 months of the car being on the road.
For the purposes of first year tax rates, hybrid vehicles will be charged based on their CO2 output, which will be on the lower end of the spectrum.
To help motorists prepare for the new first year car tax changes being introduced today, GB News has summarised the new rates.
First year car tax costs from April 1, 2025, compared to previous rules
0g/km - Rising from £0 to £10
1-50g/km - Rising from £10 to £110
51-75g/km - Rising from £30 to £130
76-90g/km - Rising from £135 to £270
91-100g/km - Rising from £175 to £350
101-110g/km - Rising from £195 to £390
111-130g/km - Rising from £220 to £440
131-150g/km - Rising from £270 to £540
151-170g/km - Rising from £680 to £1,360
171-190g/km - Rising from £1,095 to £2,190
191-225g/km - Rising from £1,650 to £3,300
226-255g/km - Rising from £2,340 to £4,680
Over 255g/km - Rising from £2,745 to £5,490
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Motorists only need to pay £10 for the first year for electric vehicles like the Tesla Model 3
X/TESLAFrom today, anyone looking to get their hands on a new Volkswagen Golf Hatch Life 1.5 TSI will pay £440, since it has an emissions output of 120g/km.
For those wanting a new BMW X5 M60i xDrive SUV will be slapped with a hefty £5,490 first year tax bill with a CO2 emissions rate of 262g/km.
However, drivers opting for a Tesla Model 3 or a Polestar 4 will only pay £10. It is estimated that these measures will raise £400million for the Government.