Drivers are being warned of new car tax changes coming in April, with experts predicting what the new tax rates could look like.
With the new financial year beginning at the start of April, motorists are preparing themselves for further tax hikes.
Vehicle Excise Duty (VED) rates are expected to change for many motorists, while other road users could benefit from a planned tax freeze.
Documents from the Treasury released alongside the Autumn Statement outlined what the Government was planning to do with motoring taxation.
The new car tax changes will be launched in April
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It stated: “The Government will uprate VED rates for cars, vans and motorcycles in line with RPI from April 1, 2024, in the Autumn Finance Bill 2023.
“To support the haulage sector, VED for HGVs and the HGV levy will both remain at 2023/24 rates for 2024/25.”
While electric vehicle owners are not required to pay VED, further tax changes will be made in April next year.
EV owners will see their VED rates increase from April 2025 and will be liable to pay the lowest first year rate, which is currently £10 a year. From the second year of registration, they will be charged the standard rate of £165 a year.
Motoring expert Pete Barden has forecast what the new car tax rates could look like in April, based on the current rate of inflation.
He stated that it was likely that the car tax increase would be less than six per cent, meaning many drivers would only see a small increase in their costs.
VED bands and rates for cars first registered on or after 1 April 2017 (rates for 2024/25)
0g of CO2/km – £0
1 to 50 – £10
51 to 75 – £30
76 to 90 – £135
91 to 100 – £175
101 to 110 – £195
111 to 130 – £220
131 to 150 – £270
151 to 170 – £680
171 to 190 – £1,095
191 to 225 – £1,650
226 to 255 – £2,340
Over 255 – £2,745
VED bands and rates for cars first registered on or after 1 March 2001 (rates for 2024/25)
A – Up to 100g of CO2/km – £0
B – 101 to 110 – £20
C – 111 to 120 – £35
D – 121 to 130 – £160
E – 131 to 140 – £190
F – 141 to 150 – £210
G – 151 to 165 – £255
H – 166 to 175 – £305
I – 176 to 185 – £335
J – 186 to 200 – £385
K – 201 to 225 – £415
L – 226 to 255 – £710
M – Over 255 – £735
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Drivers can be prosecuted if they are caught without valid tax
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VED rates are also set to change for cars and vans registered before March 1, 2001, vans registered after 2001, motorcycles and motor tricycles.
