UK Car Tax Rise: What Older Vehicle Owners & Visitors Need to Know in 2025
In the UK, Vehicle Excise Duty (VED), commonly known as car tax, is subject to periodic adjustments, with significant changes scheduled for April 2025. e changes will impact both electric and traditional fuel vehicles, particularly older models.
*Upcoming VED Changes in 2025*
Starting from April 2025, the longstanding exemption for electric vehicles (EVs) from VED will conclude. EV ow will be required to pay the standard VED rate, which is currently £195 per year. However will benefit from a reduced first-year rate of £10. This aims to promote fairness as EV adoption increases. (gov.uk)
For petrol and diesel vehicles, first-year VED rates will see substantial increases based on CO₂ emissions. For instance, vehicles emitting over 255g/km of CO₂ will experience a 100% increase in their VED charge, rising from £2,745 to £5,490 a year diesal vehicles will face an average increase of £1,114, while petrol vehicles will see an average rise of £503 hybrid cars will incur additional costs ranging from £135 to £327 depending on the model. [thesun.co.uk](https://www.thesun.co.uk/motors/32573544/car-tax-soar-rule-change-drivers/
Considerations for Visitors Bringing Vehicles into the UK
If you're planning to visit the UK with your vehicle, it's essential to understand the regulations surrounding temporary imports:
-
Temporary Importation: Non-UK residents caning eir vehicles into the UK for private use without paying VAT or custody, provided:
- The vehicle is for personal use.
- The vehicle will not be sold, lent, or hired within the U
- The vehicle re-exported within six months (or loer if eligible).
To claim relief, complete form C110 and proceed through the 'nothing to declare' channel upon arriin the UK. (gov.uk)
- Stays Exceeding Six Months: If you become a UK resident or plan to stay longer than x months, you must register and tax your vehicle in the UK. This process involves obtaining vehicle approval, registering the Driver and Vehicle Licensing Agency (DVLA), and paying the appropriate VED based on your vehicle's specifications. (gov.uk)
Conclusion
The upcoming VED changes in April 2025 will notably affect both electric and older vehicles in the UK. If you're visiting the UK with your vehicle, ensure you're familiar with the temporary importation rules to remain compliant during your stay.