Published On: Fri, Mar 14th, 2025
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BBC expert explains which drivers could face £5,490 car tax next month | Personal Finance | Finance


Expert Matt Allwright joined BBC Morning Live on Friday to dissect upcoming car tax changes that will hit drivers in the pocket.

With the deadline looming closer, there is still widespread confusion among motorists about what lies ahead.

Matt cautioned viewers to read deeper into the information they find on the internet, pointing out headlines “that need unpicking.”

Focusing his discussion on vehicle tax, which is calculated according to engine size and CO2 emissions, Matt highlighted: “They’re talking about specific cars and new cars, because they pay more in road tax upfront in that first year.”

For larger vehicles with significant CO2 output, the changes will be extremely steep. He said: “The big cars that chuck out the most CO2, after 1st of April that’s going to go from £2,475 to £5,490.

“That’s the biggest car you can dream of. For most of us, that’s not going to apply.”

However, for owners of smaller new cars with average emissions, Matt offered some reassurance. He said: “Rates for a new car with average emissions will go from £270 to £540. That’s doubling but it’s still not that £418 increase (that other cars are facing).”

Additionally, motorists should prepare for more tax changes next month. Vehicle Excise Duty, the annual tax paid by most UK vehicle owners, is set to include electric vehicles for the first time starting next month.

Matt has highlighted a significant shift for electric vehicle (EV) owners. After being previously exempt, they will now have to pay a road tax of £195 annually.

However, he mentioned a potential loophole, saying: “We reckon if you manage to retax it before the 1st of April you might save that for one year.”

He advised EV owners to check when they can retax their vehicle before April 1st and urged them to report back to the Morning Live team with any outcomes.

It is important to remember that this new Vehicle Excise Duty (VED) applies only to EVs registered after April 1st, 2017. Additionally, there’s a bit of relief for those purchasing an electric car after April 1st this year. According to Matt, they will benefit from a reduced VED charge of just £10 in their first year.

Afterward, the standard £195 fee will apply. For further details, interested parties are directed to the Morning Live website and Gov.uk.



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