Big changes to car tax in 2025, what we know so far…

Posted on December 20, 2024

Let’s talk about car tax changes in 2025, officially known as Vehicle Excise Duty (VED). With significant increases on the horizon, drivers of high-emission vehicles, electric cars, and luxury models need to be prepared for a big impact on their wallets. Here’s everything you need to know to stay ahead of the curve.

Good news for classic car enthusiasts! If your car is over 40 years old, it qualifies for Historic Class status, giving you zero car tax, no MOT requirements, and ULEZ exemption. It’s just one more reason to fall in love with classic motoring. At RNG CLASSICS, we offer a fleet of iconic vintage cars like the 1968 VW Beetle 1300, which combines nostalgia, practicality, and timeless style.

2025 tax increases are coming and for modern vehicles, the story isn’t as rosy. Starting in 2025, cars with a list price over £40,000 will face an additional £410 annual charge from years two to six. High-emission vehicles emitting over 255g/km CO2 will see their first-year tax rise to £5,490!!! followed by £600 annually.

Even electric vehicles (EVs) will lose their tax-free status. From 2025, EV owners will need to start paying annual car tax, despite ongoing government incentives to promote green driving. Does make us chuckle a little at the eco warriors who bought the marketing BS and ended up with a data collecting computer on wheels…

If you’re considering a new car, use online VED calculators to understand your tax liability before buying. For those seeking a simpler, more enjoyable driving experience, classic cars remain a tax-efficient and stylish choice.

At RNG CLASSICS, we celebrate the joy of classic motoring. From timeless icons like the Jaguar E-Type to nostalgic favorites like the VW Beetle, our fleet is here for you to relive the golden age of driving. Contact us today to book your drive and escape the modern car tax madness!

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