Ved Rates From April 2025

Ved Rates From April 2025 – Learn about the car tax surcharge, the classic car exemption and the rpi adjustment for existing cars. The government will introduce changes the vehicle excise duty (ved) first year rates for new cars registered on or after 1 april. Find out how the vehicle excise duty rates for cars, vans and motorcycles will increase by retail price index in 2025 to 2026. The flat rate cost of car tax from april 2025 is £195.

This is a standard uprating to come into effect from 1 april 2025. From the second tax payment onwards, you will pay the standard rate. In the autumn budget 2025, held on 30 october, rachel reeves announced the following changes, which will apply to 2025/26 tax years and take effect in april 2025: You will need to pay the lowest first year rate of vehicle tax set at £10 from 1 april 2025.

Hybrid cars get a small discount (£10) but if your vehicle had a list price which exceeded £40,000 when it was first sold then you may also be liable for the 'luxury car tax' fee, which adds £425 to the vehicle's annual ved costs. Standard ved rates to rise in line with rpi inflation. Learn how vehicle excise duty (ved) works in 2025 for new and used cars, based on co2 emissions and list price.

See the new rates for different co2 emissions bands and the impact of the autumn budget 2025. Policy objective increasing vehicle excise duty rates by retail price index in 2025 to 2026 will ensure that vehicle excise duty.

UK Car Tax Changes From April 2025 New Car/VED Tax Rates