Overview

• DVLA began notifying millions of drivers of new VED rates on April 1, linking annual car tax to CO2 emissions for 58% of motorists
• Electric cars registered between April 2017 and March 2025 will pay a flat £195 standard rate, losing their previous zero-emission exemption
• High-value EVs priced over £40,000 incur a £425 Expensive Car Supplement over five years, a threshold now under review by ministers
• Owners of low-emission petrol, diesel and hybrid vehicles saw first-year VED surge from £10–£30 to £110–£130, with higher-emitting cars paying up to £270
• Nearly 245,000 EV owners renewed early in March to lock in exemption and collectively saved almost £48 million, while AA experts warn many face annual hikes of £150 or more