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Drivers hit with new car payment as law change sees hundreds feel the pinch
Apr 2, 2025

Drivers across the UK could be expected to pay another tax as the start of the new financial year presents a tax reform which is expected to expect affect hundreds from now

Motorists are bracing themselves for a series of changes rolling out this month, as the DVLA introduces significant reforms to vehicle taxation.
Although the Spring Budget had limited implications for UK drivers, many are anticipating increased motoring costs in the wake of Chancellor Rachel Reeves' announcement. According to Garage.co.uk, a repair price comparison service, one of the most notable changes is the elimination of tax exemptions for electric vehicles, affecting new car buyers. They stated: "One of the main adjustments is the introduction of a £10 first-year VED rate for zero-emission vehicles (EVs).
"While £10 may seem small, this change signals the end of tax-free incentives that have long encouraged EV adoption. Likewise, zero-emission vehicles will be subject to the standard VED rates after the first year, likely increasing over time."
New electric car buyers will be required to pay a £10 fee, and existing owners of electric models will also be subject to road tax payments starting April 1, 2025.
For most drivers of electric vehicles registered after March 2017, their annual tax bill will be £195 - the same amount currently charged to petrol and diesel car owners.
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