VED Vehicle Excise Duty Changes 2025
Vehicle Excise Duty (VED) is a tax on vehicles charged depending on the vehicle type and first registration date. You may also know it as Road Tax or Road Fund Licence.
- Electric vehicles no longer exempt from VED
- In the first year of registration, cars will pay the lowest first year rate, currently £10, and vans will pay the standard rate, currently £345.
- After that, the standard rate will be charged on the vehicle’s registration anniversary. Currently, this is £195 for cars and £345 for vans for the tax year 2025/26, and this increases annually in line with inflation.
- Expensive car supplement
- This has been applied to petrol and diesel cars with a list price of over £40k since 2017.
- From April 2025, new electric cars will also attract the supplement.
- It is payable in years two to six and is in addition to the standard VED charge.
- In 2025/26 the supplement will be set at £425 per year.
- It is not being applied to vans.
- Increased VED rates for all cars with emissions over 1g/km
First year of registration rates:
- Double for cars with 76 grams or more of CO2 per kilometre
- Increase by £100 for cars with between 1g and 75g of CO2 per kilometre.
- Hybrids - including Plug ins - have tax benefits removed
The government have cancelled the £10 discount on the standard rate for hybrid vehicles.
VED and Expensive car supplement at a glance
Vehicles registered after 1 April 2025
| Vehicle | VED first year | VED second year onwards | Expensive car supplement |
|---|---|---|---|
| Electric cars over £40k | New: £10 in year one | New: Standard car rate (£195) | New: £425 |
| Electric cars under £40k | New: £10 in year one | New: Standard car rate (£195) | x |
| Electric vans | New: Light goods vehicles (£345) | New: Light goods vehicles (£345) | x |
| Hybrid, Petrol or Diesel cars under £40k | Increase: £100 or doubled | New: Standard car rate (£195) | x |
| Hybrid, Petrol or Diesel cars over £40k | Increase: £100 or doubled | New: Standard car rate (£195) | £425 |
Where vehicles are quoted and ordered in 2025, if your vehicle is delivered after 1 April 2025 you will be charged the new tax rates.
- If delivery is before 1 April, we’ll either adjust your contract to reflect the 24/25 tax rates when we set it live or refund the difference.
If you quoted and ordered in 2024 your quote was based on 24/25 rates, meaning:
- If delivery is after 1 April, we’ll need to recharge the increased VED charge, including in the first year
- If delivery is before 1 April, you won’t need to do anything.
Vehicles already on the road
The following VED charges will be applicable in the 2025/26 tax year.
| Vehicle | Renewal VED | Expensive car supplement |
|---|---|---|
| Electric Vans | New: Light goods vehicles (£345) | x |
| All fully electric cars | New: Standard car rate (£195) | x |
| Hybrid, Petrol or Diesel cars under £40k | New: Standard car rate (£195) | x |
| Hybrid, Petrol or Diesel cars over £40k | Standard card rate (£195) | £425 |
| Hybrid, Petrol or Diesel vans | Euro4/5 van rate £140 or Light goods vehicles at £345 | x |
The detail
First year VED rates for cars in 2025/2026*
| Petrol, hybrid, electric, Euro 6d diesel | |||
|---|---|---|---|
| CO2 emissions (g/km) | Change (g/km) | April 2025 | Uplift |
| --- | --- | --- | --- |
| 0 | +£10 | £10 | £10 |
| 1-50 | +£100 | £110 | £100 |
| 51-75 | £100 | £130 | £100 |
| 76-90 | Doubled | £270 | £135 |
| 91-100 | Doubled | £350 | £175 |
| 101-110 | Doubled | £390 | £185 |
| 111-130 | Doubled | £440 | £220 |
| 131-150 | Doubled | £540 | £270 |
| 151-170 | Doubled | £1,360 | £680 |
| 171-190 | Doubled | £2,190 | £1,095 |
| 191-225 | Doubled | £3,300 | £1,650 |
| 226-255 | Doubled | £4,680 | £2,340 |
| Over 255 | Doubled | £5,490 | £2,745 |
*increases annually in line with inflation
First year VED rates for vans
- All new vans will pay £345 (up £10)
- This now includes electric vans