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New UK Car Tax Rules in 2025 Are Here; And They Could Cost You More Than You Think

Starting April 1, 2025, the UK’s new car tax rules introduce Vehicle Excise Duty (VED) for electric vehicles, higher first-year charges for polluting cars, and remove hybrid discounts. EVs now face up to £195 in annual tax, plus a £425 surcharge if over £40,000. Petrol and diesel cars with high CO₂ emissions could pay as much as £5,490. Here’s what every UK driver needs to know.