Major changes to vehicle excise duty (car tax) come into effect on Tuesday, April 1, under new DVLA regulations. The standard annual road tax for vehicles registered between April 1, 2017 and March 31, 2025 will rise from £190 to £195.
Electric vehicles (EVs) will lose their road tax exemption. New EVs registered after April 1 will pay a first-year 'showroom tax' of £10, while those registered between April 1, 2017 and March 31, 2025 will become liable for the standard £195 annual rate. EVs costing over £40,000 will also incur a £425 annual 'expensive car supplement' from the second to sixth year of ownership.
Alternative fuel vehicles, including hybrids, bioethanol and liquefied petroleum gas cars, will no longer benefit from the £10 first-year rate and will move to the £195 rate. Electric vans will face an annual tax of £355, matching petrol and diesel light goods vehicles.
For new cars with CO2 emissions of 76g/km or higher, the first-year charge will treble. The highest band (255g/km or more) will see a £5,490 first-year tax, affecting models such as the Land Rover Defender V8, Porsche 911 Turbo and Bentley Continental W12. Low-emission vehicles (1-50g/km) will see first-year tax rise to £110, while those emitting 51-75g/km will pay £135.
Diesel vehicles registered from April 1 that do not comply with Real Driving Emissions Step 2 (RDE2) regulations will be moved up one showroom tax band. Drivers with disabilities may qualify for exemptions or a 50% reduction, and vehicles over 40 years old may also be exempt.
