**Drivers to Face Car Tax Increase in 2025**
In a recent development, drivers across the UK are bracing themselves for a substantial increase in car tax starting from 2025. A study conducted by the comparison website Go Compare indicates that motorists can anticipate paying an average of £418 more to drive a new car from next year. The impending changes are part of a significant overhaul of car tax regulations that are set to take effect from April 2025.
Presently, the only exemption from the yearly car tax, which is a mandatory requirement for all UK-registered vehicles, is granted to electric vehicles. However, this exception is due to be eliminated in April 2025. Subsequently, owners of zero-emissions cars will be subject to the lowest first-year rate, known as the showroom tax, amounting to £10. Following the first year, they will transition to the standard rate of £195 annually.
For those purchasing new vehicles from April 2025 emitting between 1-50 g/km of CO2, including hybrid models, the car tax will escalate from £10 to £110. In the case of cars emitting 51-75g/km of CO2, the rate will rise from £30 to £130, while vehicles emitting 76g/km of CO2 and above will face a doubling of tax rates. Notably, for cars emitting over 255g/km of CO2, the initial rate will surge from £2,745 to £5,490.
It is important to highlight that these alterations will exclusively impact new cars purchased from April next year, shielding used car owners from the heightened rates. The amount payable in car tax is contingent on the registration date of the vehicle. All petrol and diesel cars manufactured from 2017 onwards are subjected to a flat rate of £190.
For cars manufactured between 2001 and 2017, the car tax amount is calculated based on the emissions produced by the vehicle. Cars emitting up to 100g/km of CO2 are exempt from car tax, although owners are required to renew their registration annually with the DVLA. Conversely, cars emitting over 255g/km of CO2 will incur a substantial charge of £735.
Beginning April 2025, even vehicles falling within the lowest emissions category, which are presently exempt from car tax, will be liable for a £20 fee. A Government spokesperson indicated that the adjustment involves up-rating the Vehicle Excise Duty standard rates for cars, vans, motorcycles, and motorcycle trade licences in line with the Retail Price Index, incorporating zero-emission vehicles in Vehicle Excise Duty from April 1, 2025. They emphasized that this measure is a standard uprating effective from April 2025 to maintain Vehicle Excise Duty receipts in real terms.
Amid this impending change in car tax rates, it is essential for drivers to be aware of the revised regulations and plan accordingly to manage the increased financial burden associated with owning and operating a car in the coming years.
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In this news article, we discuss the forthcoming increase in car tax for drivers in the UK starting from 2025. The adjustments in car tax rates are set to impact new vehicle owners significantly, with varying rates based on CO2 emissions. It is crucial for drivers to familiarise themselves with the revised regulations to adequately prepare for the financial implications of these changes.