Car tax bands 2025: VED road tax rates
The Vehicle Excise Duty (VED) for cars in the UK is set to change in 2025, with new tax bands and rates being introduced. Here's a breakdown of the new car tax bands for 2025:
VED road tax rates for 2025
- Standard rate: £140-£170 per year
- First-year rate: £140-£170 per year (plus an additional £140-£170 for the first year)
- Zero-emission vehicles: £0 per year (for the first 5 years)
The VED rates will be based on the car's CO2 emissions, with higher emitting vehicles paying more tax.
"The new VED rates will be designed to encourage the purchase of cleaner, more efficient vehicles, while also generating revenue for the government." - HM Revenue & Customs
The new car tax bands for 2025 will be as follows:
- Band A (0-20g/km): £0 per year
- Band B (1-50g/km): £20-£30 per year
- Band C (51-70g/km): £40-£60 per year
- Band D (71-90g/km): £60-£80 per year
- Band E (91-100g/km): £80-£100 per year
- Band F (101-110g/km): £100-£120 per year
- Band G (111-120g/km): £120-£140 per year
- Band H (121-140g/km): £140-£160 per year
- Band I (141-150g/km): £160-£180 per year
- Band J (151-160g/km): £180-£200 per year
- Band K (161-170g/km): £200-£220 per year
- Band L (171-180g/km): £220-£240 per year
- Band M (181-190g/km): £240-£260 per year
- Band N (191-200g/km): £260-£280 per year
- Band P (201-225g/km): £280-£300 per year
- Band R (226-255g/km): £300-£340 per year
- Band T (256-300g/km): £340-£380 per year
- Band U (301-350g/km): £380-£420 per year
- Band V (351-400g/km): £420-£460 per year
- Band X (401-450g/km): £460-£500 per year
- Band Y (451-500g/km): £500-£540 per year
- Band Z (501g/km and above): £540 per year
It's worth noting that these rates are subject to change and may not be final.
The new VED rates for 2025 will have a significant impact on car buyers and owners, with some vehicles facing much higher tax bills.
In conclusion, the new car tax bands for 2025 will be a significant change for car buyers and owners, with a focus on encouraging the purchase of cleaner, more efficient vehicles.
Author's summary: The new VED rates for 2025 will have a significant impact on car buyers and owners, with a focus on encouraging the purchase of cleaner, more efficient vehicles. The new tax bands will be based on the car's CO2 emissions, with higher emitting vehicles paying more tax. The rates will be as follows: Band A (0-20g/km): £0 per year, Band B (1-50g/km): £20-£30 per year, and so on.