April 2025 Car Tax Changes: What Shropshire Drivers Need to Know Now.

Disclaimer: This article provides general information about upcoming Vehicle Excise Duty (VED) changes and is not financial, legal, or tax advice. While we strive for accuracy, JT Hughes cannot guarantee the completeness or timeliness of this content. Tax rates, thresholds, and policies may change. Always verify your vehicle’s tax obligations using official GOV.UK resources or consult a qualified professional. JT Hughes** accepts no liability for actions taken based on this article. Vehicle specifications, pricing, and tax implications vary.

Significant changes to the UK's Vehicle Excise Duty (VED) are coming on 1 April 2025.

For the first time, electric vehicle (EV) drivers—who were previously exempt—will be affected.

Whether you drive petrol, diesel, hybrid, or electric, these updates will impact your wallet.

But here’s the good news:

By understanding these changes now, you can plan ahead and avoid unnecessary costs.

Let’s break down what’s changing and how you can stay ahead.

What Are the New Car Tax Changes in April 2025?

Electric Vehicles (EVs): No Longer Tax-Free
Electric vehicles will now be taxed similarly to petrol and diesel cars. Here’s how:

New EVs registered on or after 1 April 2025:

• £10 for the first year  
• £195 annually thereafter  

EVs registered between 1 April 2017 and 31 March 2025:

• £195 annually  

EVs registered between 1 March 2001 and 31 March 2017:

• £20 annually  

Key Takeaway: EVs lose their tax-free status, aligning them with traditional vehicles. 

Hybrid & Alternative Fuel Vehicles (AFVs): Discount Removed

Hybrids and AFVs are losing their £10 annual discount. The new rates are: 

• Registered before 1 April 2017: Tax remains based on CO₂ emissions.
• Registered on or after 1 April 2017: Flat rate of £195 annually  

Key Takeaway: Hybrid owners will now pay the same as petrol and diesel drivers. 

Petrol & Diesel Vehicles: Higher First-Year Rates

The first-year tax rates for petrol and diesel vehicles are being adjusted: 

• Non-RDE2 diesel vehicles emitting over 255 g/km CO₂: 
• First-year tax will increase from £2,745 to £5,490. 

Petrol vehicles emitting over 255 g/km CO₂: 

• First-year tax will be £760. 

Key Takeaway: High-emission non-RDE2 diesel cars will face significantly higher upfront costs, while petrol vehicles will see moderate increases. 

Premium Car Supplement—Now Includes EVs

• Applies to cars with a list price over £40,000. 
• An extra £410 annually, bringing the total annual cost to £605 when combined with the standard rate (£195). 
• Previously exempt EVs now included. 

Key Context: The £40,000 threshold now includes more non-luxury models due to inflationary pressures, potentially affecting a wider range of buyers. 

Key Takeaway: The premium supplement will impact more buyers, including those purchasing higher-end EVs and mid-range models affected by inflation. 

Key Date to Remember:

1 April 2025**—New VED rates come into effect. 

How to Stay Ahead & Avoid Higher Costs

Check Your Car’s Tax Status 
Visit GOV.UK’s vehicle tax checker to see how these changes affect your vehicle. 

Consider Your Next Vehicle Wisely

Planning a new purchase? Opt for low-emission, tax-efficient models to minimise costs. 

Budget for the Changes

Add the new VED rates to your annual expenses to avoid surprises. 

Stay Informed

Regularly check updates from the DVLA and GOV UK for any additional changes.

Find the Right Vehicle Before the Changes Take Effect  

At JT Hughes, we offer a wide range of models from Honda, Hyundai, Mazda, Kia, KGM, and Isuzu.  
Browse our latest models now and secure your perfect car before the April 2025 tax changes hit. 

The Bottom Line

The upcoming VED changes will affect all vehicle owners—especially EV drivers now facing new costs.

By staying informed, budgeting wisely, and making smarter purchase decisions, you can avoid any unpleasant surprises.  

Need a tax-smart vehicle Visit JT Hughes today and find the right car before April 2025 hits  

Frequently Asked Questions 

Q1: Will electric cars still be worth buying after April 2025? 
Yes. Despite the new tax, EVs still offer lower running costs and environmental benefits. 

Q2: How do I check my vehicle's tax status? 
You can check it online at GOV.UK’s vehicle tax checker  

Q3: Are hybrids still cheaper to tax?
No. Hybrids will pay the same flat £195 rate as petrol and diesel vehicles. 

Q4: What cars are exempt from the premium car supplement? 
Only vehicles with a list price under £40,000 will be exempt from the extra £410 annual charge. However, due to inflation, more mid-range vehicles may now fall into this bracket. 

Q5: How much will high-emission cars cost to tax in the first year?
For non-RDE2 diesel cars emitting over 255 g/km CO2, the first-year tax will be **£5,490**. Petrol vehicles with similar emissions will face a £760 charge.

Q6: What’s the biggest impact of these changes? 
Electric vehicles losing their tax-free status, non-RDE2 diesel vehicles with higher emissions facing substantial first-year charges, and the broader reach of the premium supplement due to inflation. 

You’re now fully equipped to navigate the April 2025 car tax changes.