HUGE UK. VED CHANGES 1st April 2025
10 EXAMPLES OF POPULAR CAR UK VED RATES
YOU HAVE BEEN WARNED !!!!!!!!!!!!!!!!!!!!
You could literally save yourself thousands of pounds!
The type and model of car you buy, could make a HUGE difference to how much you pay in Vehicle Excise Duty (VED) in the first 6 Years of Ownership.
This article explains, in a simple way, how the new Uk. Vehicle tax is calculated and gives 10 examples of how much popular vehicles will be taxed, plus a guide for you to calculate the VED tax for your vehicle.
Armed with this information, you can make a better, more informed buying decision.Y
WHY has the government made the changes?
The UK government has implemented these changes to the way new cars are taxed from 1st April 2025 for a few key reasons:
- To encourage the transition to electric vehicles (EVs)
- To ensure all road users contribute to road maintenance
- To create a fairer system
Essentially, the changes are a mix of environmental policy, fiscal responsibility, and a desire to create a perceived sense of fairness among road users.
WHAT is Vehicle Excise Duty (VED) comprised of;
- The CO2 Emissions Rate – the amount depends on CO2 rating of the vehicle.
- The Standard Annual Rate – the amount depends on the 1st Registration
- The Expensive Car Supplement – £410 applied where manufacturers list price + additions is over £40,000.
WHEN do you pay these components?
- The CO2 Emissions Rate – Year 1 only, when 1st Registration is made.
- The Standard Annual Rate – Year 2 and then annually, for the life of the vehicle.
- The Expensive Car Supplement – Year 2, 3, 4, 5 & 6.
HOW MUCH do you pay?
The total amount of VED to be paid is made up of 3 components.
- The CO2 Emissions Rate
The amount is based of the number of grams of CO2 per Kilometre emitted, as stated by the Manufacturer.
There are different rates depending on;
- The Year of the vehicles 1st Registration
- Registered after 1st April 2017 – See Table B1 CO2 Emission Rates
- Registered between 1st March 2001 and 31st March 2017 – See Table B2 CO2 Emission Rates
- The Propulsion Type
- Electric,
- Petrol,
- Diesel (RDHE compliant),
- Diesel (not RDHE compliant),
- Alternative (covers Hybrids, Bi-Ethanol & LPG)
.……..
- The Standard Annual Rate
The amount paid by all Uk. Vehicles to be allowed on the public roads.
There are 2 sets of amounts based on Year of 1st Registration
- Registered on/ after 1st March 2001 – See Table A1 Standard VED
- Registered before 1st March 2001 – See Table A2 Standard VED
- The Expensive Car Supplement
Since April 2017, cars with a list price exceeding £40,000 pay an additional supplement as well as paying the standard rate, which means those who can afford the most expensive cars pay more than the standard rate imposed on other drivers.
The ECS stands is currently 2025 £410 per year.
HOW TO CALCULATE how much you will pay (First 6 Years of Ownership)
Get yourself an a grid (Paper or Worksheet) and Enter > the information on the vehicle and the Standard Rate Tables A1/A2 and CO2 Emission Tables B1/B2.
10 Popular Car Examples of How Much you will need to pay
See below that the range of VED rates for 6 years is from £985 for EVs under £40,000 up to £5770 for Range Rover.
In between that the VED for a 7 seater KIA EV9 is £3035 and Audi Q7 £5365 for 6 years VED
Hopefully now you know how much Uk. VED you will need to pay!
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Standard Rate Tables A1/A2 and CO2 Emission Tables B1/B2.
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