The recent changes to road tax rates in the UK have left many drivers reeling. The DVLA has increased the tax payable by millions of motorists, with a range of changes to existing charges including an increase in the standard rate for all cars and the removal of the tax exemption for electric vehicles (EVs). The standard annual road tax rate has risen from £190 to £195, which applies to all cars first registered after April 1, 2017, and before March 31, 2025. This means that new EVs registered from April 1, 2025, will be taxed £10 in the first year, a move referred to as the’showroom tax’. Those with a list price over £40,000 will also be subject to the ‘expensive car supplement’. * Key points about the changes:
• New standard annual road tax rate: £195 (up from £190)
• New EVs registered from April 1, 2025, will be taxed £10 in the first year
• Electric vehicles registered before March 31, 2025, will pay the standard rate of £195 per year
• Electric vehicles registered before March 31, 2017, will pay a lower annual rate of £20
• New taxes for EVs
• New taxes for low-emission vehicles
• Doubling of first-year rates for higher-polluting new cars
• Increased tax for electric vans
There are also other changes to road tax rates for cars producing different levels of CO2. Cars emitting between one and 50g/km of CO2 are now subject to a £110 tax rate, while those emitting between 51-75g/km will now pay £135 in their first year. The first-year road tax for new cars emitting 76g/km or more has doubled to £135.

1. New cars in the highest band, those emitting 255g/km or more, are now liable for a £5,490 tax in their first year.
2. 59 new models from 24 car manufacturers, including the Bentley Continental W12, Porsche 911 Turbo, and Land Rover Defender V8, will be impacted.

These changes have sparked concerns among drivers, with some considering selling their vehicles in light of the increased costs. However, it’s worth noting that the new regulations also bring some benefits. For example, drivers who own older EVs will now be eligible for the cheapest annual road tax rate of £20.

According to Richard Evans, head of technical services at Webuyanycar, the recent alterations in vehicular tax represent a ‘pivotal shift’ for UK drivers. He notes that the changes may cause some drivers to reconsider their vehicle choices, but it’s difficult to predict exactly how it will impact people’s decision to sell their current vehicles. Evans said: “The most recent DVLA tax changes mark a pivotal shift for British motorists, particularly for EV owners, who are now facing road tax for the first time. Whilst these changes may well cause British drivers to reconsider their vehicle choices, it is difficult to predict exactly how it will impact people’s decision to sell their current vehicles as despite the changes and increases across the board, EV drivers still have the most favourable road tax rates.”
One thing that is clear is that since these changes took effect on April 1, owners of EVs first registered before April 2017 now have the cheapest annual road tax rate of all at £20. This makes older EVs an attractive option for budget-conscious used car buyers looking to save on running costs. On the other hand, road tax rates for cars producing over 76 g/km of CO2 have doubled, so if you buy a new luxury or performance car in the highest emissions band, you’ll now face a £5,490 first-year road tax bill.

“If ownership costs are a concern, it pays to opt for a greener motor,” said Richard Evans.

Full list of tax changes from April 1:

1. New standard road tax rate: The new annual standard rate for road tax has now increased from £190 to £195. This will now apply to all vehicles that have been first registered after April 1, 2017, and before March 31, 2025.
2. New taxes for EVs: Previously there was a road tax exemption for all EVs, however this has now ended. Now, new EVs that were registered from April 1 will be taxed £10 in the first year. This has become known as the’showroom tax’. Any EVs that were registered between April 1, 2017, and March 31, 2025, will be required to pay the new standard rate road tax of £195 per year. Those that were registered before March 31, 2017, benefit from a lower annual rate of £20.
3. The £10 discount on the standard rate road tax for alternative fuel vehicles, which includes hybrid, bioethanol and liquefied petroleum gas (LPG) cars, has now been discontinued. Those affected are now subject to the new standard annual rate of £195.
4. In terms of electric vans, they will be taxed at an annual rate of £355, the same as petrol and diesel light goods vehicles. Any electric vehicles registered with a list price over £40,000 will also incur an additional £425 per year between the second and sixth years of ownership, known as the ‘expensive car supplement’.
5. Doubling first-year rates for higher-polluting new cars: The first-year rate for cars in all other road tax bands, those emitting 76g/km or more, has now doubled. New cars in the highest band, those emitting 255g/km or more, are now liable for a £5,490 tax in their first year. This top rate will impact 59 new models from 24 car manufacturers, including the Bentley Continental W12, Porsche 911 Turbo, and Land Rover Defender V8.
6. Tax increases for low-emission vehicles: First-year road tax rates for low-emission vehicles that emit between 1 and 50g/km of CO2 have increased to £110. Previously, hybrid cars in this band, including most plug-in hybrids, were exempt from road tax in their first year, while petrol and diesel cars in the same band paid £10.

Despite the changes, there are still some car tax exemptions available, including:
* Vehicles with a Statutory Off-road Notification (SORN) won’t be required to pay road tax for that specific vehicle. They will also qualify for a road tax refund from the DVLA if they have any full months’ tax remaining. * Historic vehicles: Typically, cars over 40 years old are eligible for road tax exemption, but this is not automatic. Drivers must apply once their car meets the eligibility criteria. * Drivers with disabilities: Drivers can seek exemption from road tax if they are in receipt of certain benefits. However, it’s worth noting that the increased tax rates for high-polluting cars may have a greater impact on budget-conscious buyers. The new regulations may lead to more drivers reconsidering their vehicle choices, with some potentially opting for greener alternatives to reduce their ownership costs. As Evans noted, it’s a pivotal shift for UK drivers, particularly for EV owners, who are now facing road tax for the first time.