April tax rules to make ‘automobiles more expensive to | Tech News
New car tax modifications which got here into impact earlier this week will “make cars more expensive to own”, in accordance to specialists. Vehicle Excise Duty (VED) charges went up for nearly all petrol, diesel and electric car homeowners from April 1, 2025.
Many of the will increase had been in step with Retail Price Index (RPI) inflation though the introduction of electric car, hybrid and first-year VED costs are new for 2025. Andy Wood, International Tax Expert at Tax Natives has urged the new charges will dramatically increase the associated fee of possession. Electric automobiles are doubtless to really feel the influence of the modifications having beforehand been fully exempt from VED charges up till now.
However, Andy stresses the information may very well be good for EVs which are actually doubtless to be cheaper than petrol and diesel fashions.
Andy stated: “Although electric vehicle homeowners are nonetheless benefiting from the shift in direction of cleaner autos, the top of the VED exemption will make these automobiles more expensive to own.
“However, the costs are still relatively lower compared to traditional petrol or diesel cars, making EVs a better option for many drivers in the long term.”
Brand new electric car homeowners pay simply £10 within the first-year on the roads, significantly decrease than combustion fashions.
This is an further £425 charge issued to autos with a record price over £40,000, payable over a five-year spell between 12 months two and 12 months six.
Tax Natives warns this will likely convey complete EV payments up to £620, which might be a main concern for cash-strapped highway customers.
Motoring specialists at DriveElectric beforehand predicted the new tax rules wouldn’t have an excessive amount of of an influence on electric autos.
They commented: “While VED will be introduced for EVs, they still offer lower running costs, tax benefits, and environmental advantages compared to traditional petrol or diesel vehicles.”
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