Major car tax changes could see drivers of popular vehicles slapped with a £5,490 bill - are you at risk?
GB NEWS
The Government hinted that further car tax changes could be rolled out in the future
Thousands of drivers could see their car tax costs rocket next year as the Budget confirmed that prices would be doubling from next April.
Chancellor Rachel Reeves unveiled the Budget at the end of last month and included a number of massive changes to motorists, including a surprise freeze on fuel duty and extra funding for potholes.
As part of Budget documents published shortly after the Chancellor's Autumn Statement on October 30, the Government confirmed that car tax changes would be introduced.
It announced that the Government would change the first year rates for Vehicle Excise Duty for new cars on or after April 1, 2025, to incentivise the purchase of new EVs by "widening the differentials between zero emission, hybrid and ICE cars".
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Drivers will see car taxes hiked in the coming months
X/DVLAAs part of this, zero emission cars will pay the lowest first year rate at £10 until 2029-30, while cars emitting between one and 50g/km of CO2, including hybrid vehicles, will increase to £110 for 2025-26.
Further car tax rates will see cars emitting between 51 and 75g/km of CO2 will increase to £130. However, all other rates for cars emitting more than 76g/km will double.
Britons who buy the most polluting petrol and diesel cars (over 255g/km) from April 1, 2025, are expected to fork out £5,490 when rates double next year.
Changes were also made to Vehicle Excise Duty rates for heavy goods vehicles. These rates will be uprated in line with inflation from April 1, 2025, in addition to the HGV Levy.
Van drivers will also see the Government uprate the Van Benefit Charge and Car and Van Fuel Benefit Charges by CPI from April 6, 2025.
The Budget also acknowledged that the Government may make changes to the Expensive Car Supplement to make it easier to buy electric vehicles, although this would only happen "at a future fiscal event".
With these new changes set to be introduced next year, motorists may be cautious about any new cars they purchase as they could come with an enormous tax bill.
Vehicles, particularly those which pollute more than 255g/km of CO2, could see some motorists pay thousands of pounds extra every year just to keep their vehicles on the road.
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Chancellor Rachel Reeves confirmed that Vehicle Excise Duty (VED) would be uprated next year
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