Drivers are being warned about expensive car tax changes that could see them pay hundreds or thousands of pounds per year to keep their vehicle on the road.
Chancellor Rachel Reeves unveiled new car tax rates in last October's Autumn Statement, with many focusing on incentivising motorists to switch away from petrol and diesel vehicles and towards zero emission cars.
Millions of motorists around the UK saw their car tax bills increase at the start of the new financial year last month, regardless of how clean or polluting their vehicle is.
The standard rate of Vehicle Excise Duty (VED) for cars, vans and motorcycles, excluding first year rates for cars, was hiked in line with the Retail Price Index from April 1, 2025.
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Chancellor Rachel Reeves unveiled new car tax measures in the Autumn Statement last year
PA/GETTY
Last month also marked the end of a tax loophole which benefitted electric vehicles. All zero emission cars are now required to pay VED, in addition to the Expensive Car Supplement (ECS), which costs owners £425 if their car has a list price of more than £40,000.
Chancellor Rachel Reeves also announced new first year rates for VED to "strengthen incentives to purchase zero emission and electric cars, by widening the differentials" between zero emission, hybrid and internal combustion engine cars.
While any new zero emission vehicle registered after April 1, 2025, will only pay £10, rates for cars emitting between one and 50g of CO2 per kilometre will increase to £110.
Any vehicle which emits more than 76g/km of CO2 will see previous rates double, meaning people who purchase the most polluting petrol and diesel vehicles could pay as much as £5,490.
To help drivers adjust to the new changes, GB News has rounded up the most important car tax rates impacting motorists.
The Expensive Car Supplement applies to all vehicles with a list price of more than £40,000
PATax rate for cars registered on or after April 1, 2017 (first tax payment)
0g/km - £10
1 to 50g/km - £110
51 to 75g/km - £130
76 to 90g/km - £270
91 to 100g/km - £350
101 to 110g/km - £390
111 to 130g/km - £440
131 to 150g/km - £540
151 to 170g/km - £1,360
171 to 190g/km - £2,190
191 to 225g/km - £3,300
226 to 255g/km - £4,680
Over 255g/km - £5,490
Tax rate for cars registered on or after April 1, 2017 (second tax payment onwards)
Petrol, diesel, electric and alternative fuel - £195
Electric cars are now required to pay Vehicle Excise Duty
PATax rates for cars registered between March 1, 2001, and March 31, 2017
Band A (Up to 100g/km) - £20
Band B (Between 101 to 110g/km) - £20
Band C (Between 111 to 120g/km) - £35
Band D (Between 121 to 130g/km) - £165
Band E (Between 131 to 140g/km) - £195
Band F (Between 141 to 150g/km) - £215
Band G (Between 151 to 165g/km) - £265
Band H (Between 166 to 175g/km) - £315
Band I (Between 176 to 185g/km) - £345
Band J (Between 186 to 200g/km) - £395
Band K* (Between 201 to 225g/km) - £430
Band L (Between 226 to 255g/km) - £735
Band M (Over 255g/km) - £760
*Band K also includes cars which emit 225g/km but were registered before March 23, 2006.
LATEST DEVELOPMENTS:
Classic cars do not need to pay VED if they are older than 40 years of age PATax rates for cars registered before March 1, 2001
Engines not over 1,549cc - £220
Engines over 1,549cc - £360
