Rachel Reeves hits petrol, diesel and electric vehicles with new car tax hikes as drivers face £5,490 cost (0.01702127659574468)
<iframe frameborder="0" height="100%" scrolling="no" src="https://www.gbnews.com/res/scraper/embed/?video_url=https%3A%2F%2Fmm-v2.simplestream.com%2Fiframe%2Fplayer.php%3Fkey%3D3Li3Nt2Qs8Ct3Xq9Fi5Uy0Mb2Bj0Qs%26player%3DGB003%26uvid%3D52664692%26type%3Dvod%26viously_id%3DwpUGSebN9YO" width="100%"></iframe><br/><p>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.</p><p>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.</p><h3></h3><br/><p>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.</p><p>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.</p><p><em><strong>Do you have a story you'd like to share? Get in touch by emailing</strong></em> <a href="mailto:[email protected]" rel="noopener noreferrer" target="_blank"><em><strong>[email protected]</strong></em></a></p><h3></h3><br/><img alt="Chancellor Rachel Reeves and a DVLA vehicle tax reminder letter" class="rm-shortcode" data-rm-shortcode-id="81ea5c109648a844606a9e1a82aa81f8" data-rm-shortcode-name="rebelmouse-image" id="27c38" loading="lazy" src="https://www.gbnews.com/media-library/chancellor-rachel-reeves-and-a-dvla-vehicle-tax-reminder-letter.jpg?id=60192526&width=980"/><h3></h3><br/><div class="embed-latest"></div><p>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.</p><p>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.</p><p>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.</p><p>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.</p><p>To help drivers adjust to the new changes, GB News has rounded up the most important car tax rates impacting motorists. </p><h3></h3><br/><img alt="Car dealership" class="rm-shortcode" data-rm-shortcode-id="80e3b71a4e9b55e1cea15a3713b21b5c" data-rm-shortcode-name="rebelmouse-image" id="1f8cc" loading="lazy" src="https://www.gbnews.com/media-library/car-dealership.jpg?id=56212720&width=980"/><h3></h3><br/><div class="embed-dontmiss"></div><h3></h3><h3></h3><h3>Tax rate for cars registered on or after April 1, 2017 (first tax payment)</h3><p>0g/km - £10</p><p>1 to 50g/km - £110</p><p>51 to 75g/km - £130</p><p>76 to 90g/km - £270</p><p>91 to 100g/km - £350</p><p>101 to 110g/km - £390</p><p>111 to 130g/km - £440</p><p>131 to 150g/km - £540</p><p>151 to 170g/km - £1,360</p><p>171 to 190g/km - £2,190</p><p>191 to 225g/km - £3,300</p><p>226 to 255g/km - £4,680</p><p>Over 255g/km - £5,490</p><h3>Tax rate for cars registered on or after April 1, 2017 (second tax payment onwards)</h3><p>Petrol, diesel, electric and alternative fuel - £195</p><h3></h3><br/><img alt="Electric car charger" class="rm-shortcode" data-rm-shortcode-id="30c44db81452c0e5048400f39658ef51" data-rm-shortcode-name="rebelmouse-image" id="a9743" loading="lazy" src="https://www.gbnews.com/media-library/electric-car-charger.jpg?id=60059051&width=980"/><h3></h3><br/><div class="embed-mostread"></div><h3>Tax rates for cars registered between March 1, 2001, and March 31, 2017</h3><p>Band A (Up to 100g/km) - £20</p><p>Band B (Between 101 to 110g/km) - £20</p><p>Band C (Between 111 to 120g/km) - £35</p><p>Band D (Between 121 to 130g/km) - £165</p><p>Band E (Between 131 to 140g/km) - £195</p><p>Band F (Between 141 to 150g/km) - £215</p><p>Band G (Between 151 to 165g/km) - £265</p><p>Band H (Between 166 to 175g/km) - £315</p><p>Band I (Between 176 to 185g/km) - £345</p><p>Band J (Between 186 to 200g/km) - £395</p><p>Band K* (Between 201 to 225g/km) - £430</p><p>Band L (Between 226 to 255g/km) - £735</p><p>Band M (Over 255g/km) - £760</p><p>*Band K also includes cars which emit 225g/km but were registered before March 23, 2006.</p><p><strong>LATEST DEVELOPMENTS:</strong></p><ul><li><a href="https://www.gbnews.com/lifestyle/cars/classic-car-drivers-uk-us-trade-deal-auto-tariffs" target="_blank">Classic car drivers left 'high and dry' after UK-US trade deal slashed auto tariffs to 10%</a></li><li><a href="https://www.gbnews.com/lifestyle/cars/mechanic-warning-drivers-cars-break-down" target="_self">Mechanic issues urgent warning for millions of British drivers as cars will 'break down in the future'</a></li><li><a href="https://www.gbnews.com/lifestyle/cars/rachel-reeves-electric-vehicles-petrol-diesel" target="_self">Rachel Reeves backs electric vehicles with new factory pushing millions away from petrol and diesel cars</a></li></ul><h3></h3><br/><img alt="Classic car" class="rm-shortcode" data-rm-shortcode-id="a557ed6077e2083b68688659f4da0939" data-rm-shortcode-name="rebelmouse-image" id="7d70b" loading="lazy" src="https://www.gbnews.com/media-library/classic-car.jpg?id=51121620&width=980"/><h3></h3><br/><h3>Tax rates for cars registered before March 1, 2001</h3><p>Engines not over 1,549cc - £220</p><p>Engines over 1,549cc - £360</p>
