British drivers might be contemplating selling their vehicles in light of a rise in road tax. As of April 1, the DVLA has hiked the tax payable by millions of motorists, including an increase in the standard rate and the removal of the tax exemption for electric vehicles (EVs).

Tax increases have also been implemented for low-emission vehicles, while the first-year rates for new cars with higher emissions have doubled. The AA suggests that these new tax rates could result in the average UK car paying over £650 annually in fuel duty and road tax.

The new standard annual road tax rate has risen from £190 to £195 and applies to all cars – EVs included – first registered between April 1, 2017, and March 31, 2025. New EVs registered from April 1, 2025, will be taxed £10 in the first year – referred to as the 'showroom tax' – while those with a list price over £40,000 will also be subject to the 'expensive car supplement'.

These high-value cars are now required to pay an additional £425 per year between the second and sixth years of ownership. However, all EVs registered before March 31, 2017, will pay a lower annual rate of £20.

The new regulations also impact low-emission vehicles, with those emitting between one and 50 g/km of CO2 now subject to a £110 tax rate. Prior to the changes, hybrid cars in this band – which includes most plug-in hybrids – paid no road tax in the first year, while petrol and diesel cars in the same band paid £10, reports the Mirror.