These drivers will face eye-watering £5,500 car tax bill from this date




The news could be a major blow for those excited to secure a brand new car with the move likely to price people many out of sales,

Honest John said: “While most bands will rise in line with RPI inflation, changes have been made to the first-year rates that could mean a bill of almost £5500 for some buyers.”

Any models generating more than 76 to 90 grams per kilometre of CO2 will see fees double from the spring.

The charges rise on a sliding scale with models emitting higher pollution more affected than cleaner vehicles.

Cars emitting between 226 and 255 g/km of CO2 will also face mega price hikes with bills set to soar from £2,340 to £4,680.

Cars generating 191 to 225 g/km of CO2 tailpipe emission will pay £3.300 from April instead of the existing £1,650 fee.

According to HM Revenue and Customs, the rules change will “increase the incentives towards new zero-emission cars at the point of purchase”.

They stressed the move would likely support the take-up of new electric vehicles which officials claim is crucial to achieving their Net Zero goals.

HMRC analysis shows the new updates to first-year rates would generate an extra £415million in revenue between 2025//26.

An additional £410million is likely to be raised next year but revenues could fall to just £200million more by 2029/30 as more switch to electric models.

Officials stressed that revenue made from the change will be used to help support public services and infrastructure across the UK.

HMRC said: “Vehicle Excise Duty first-year rates are paid for the first year of a car’s lifecycle, at the point of registration, and vary based on emissions.

“From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars.”



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Posted: 2025-02-16 13:44:07

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