UPDATE: |Drivers facing £650 payment for new DVLA car tax – check if you can claim exemption News

It’s not all doom and gloom with tax hikes, as there are still some exemptions to car tax

Some car and van drivers are considering selling their vehicles after a DVLA road tax hike that took effect at the start of the month, it has been suggested. On April 1, the DVLA hit millions of drivers with extra costs, as it rolled out changes to existing charges, including a rise in the standard rate for all vehicles.

More controversially, it scrapped of the tax exemption for electric vehicles (EVs).

Low-emission vehicles have also been hit by a hike in taxes, while the first-year rates for high-polluting new cars have seen a twofold increase. According to the AA, these new tax rates could see the average UK car owner shelling out over £650 annually on fuel duty and road tax.

You can check to see how you’re affected by the DVLA’s April 1 changes on the Webuyanycar website. Enter your number plate registration here, and it will let you know your CO2 emissions and how much car tax you’re eligible to pay going forward.

The new standard annual road tax rate has jumped from £190 to £195 and applies to all cars, including EVs, first registered between April 1, 2017, and March 31, 2025. New EVs registered from April 1, 2025, will be subject to a £10 ‘showroom tax’ in the first year, while those with a list price exceeding £40,000 will also face the ‘expensive car supplement’.

Owners of these high-value cars will now need to fork out an extra £425 per year between the second and sixth years of ownership. However, all EVs registered before March 31, 2017, will benefit from a lower annual rate of £20.

The latest regulations have also hit low-emission vehicles, with those emitting between one and 50 g/km of CO2 now slapped with a £110 tax rate. Prior to these changes, most plug-in hybrids in this band paid no road tax in the first year, while petrol and diesel cars in the same band were charged £10, reports Nottinghamshire Live. The first-year road tax for newer cars emitting between 51-75 g/km has jumped to £135, up from the previous £20 fee for hybrids and £30 for petrol and diesel vehicles. Rates for new cars that are more polluting and emit over 76g/km have also skyrocketed, doubling in cost.

Richard Evans, head of technical services at Webuyanycar, described the recent changes in vehicle tax as a ‘pivotal shift’ for UK drivers. Evans commented on the recent DVLA tax adjustments, noting their significant impact on EV owners: “The most recent DVLA tax changes mark a pivotal shift for British motorists, particularly for EV owners, who are now facing road tax for the first time. Whilst these changes may well cause British drivers to reconsider their vehicle choices, it is difficult to predict exactly how it will impact people’s decision to sell their current vehicles as despite the changes and increases across the board, EV drivers still have the most favourable road tax rates.”

He also pointed out a potential benefit for those in the used car market: “One thing we do know is that since these changes took effect on April 1, owners of EVs first registered before April 2017 now have the cheapest annual road tax rate of all at £20. This makes older EVs an attractive option for budget used car buyers looking to save on running costs.”

Furthermore, Evans highlighted the steep increase in taxes for high-emission vehicles: “Meanwhile, road tax rates for cars producing over 76 g/km of CO2 have doubled, so, if you buy a new luxury or performance car in the highest emissions band, you’ll now face a £5,490 first-year road tax bill. Therefore, if ownership costs are a concern, it pays to opt for a greener motor.”

Full list of tax changes from April 1

New standard road tax rate: The new annual standard rate for road tax has now increased from £190 to £195. This will now apply to all vehicles that have been first registered after April 1, 2017, and before March 31, 2025.”

New EV taxtes: The road tax exemption previously enjoyed by all electric vehicles (EVs) has now been scrapped. As of April 1, new EVs will be subject to a £10 ‘showroom tax’ in their first year. Furthermore, any EVs registered between April 1, 2017, and March 31, 2025, will have to pay the new standard rate road tax of £195 annually. However, those registered before March 31, 2017, will enjoy a lower annual rate of £20.

The £10 discount on the standard rate road tax for alternative fuel vehicles, including hybrid, bioethanol and liquefied petroleum gas (LPG) cars, has also been discontinued. These vehicles are now subject to the new standard annual rate of £195.

Electric vans haven’t escaped the changes either; they’ll now be taxed at an annual rate of £355, the same as petrol and diesel light goods vehicles. Additionally, any electric vehicles with a list price over £40,000 will incur an extra £425 per year between the second and sixth years of ownership, a levy known as the ‘expensive car supplement’.

Doubling first-year rates for higher-polluting new cars: In a move aimed at discouraging high-polluting vehicles, first-year rates for cars in all other road tax bands, those emitting 76g/km or more, have now doubled. New cars in the highest band, those emitting 255g/km or more, will now face a hefty £5,490 tax in their first year. This top rate will affect 59 new models from 24 car manufacturers, including the Bentley Continental W12, Porsche 911 Turbo and Land Rover Defender V8. The tax landscape for low-emission vehicles has seen some changes.

Tax hikes for low-emission vehicles: First-year road tax rates for vehicles emitting between 1 and 50g/km of CO2 have risen to £110. Previously, most plug-in hybrids in this band were exempt from first-year road tax, while petrol and diesel cars paid just £10. For new cars emitting 51-75g/km, the first-year road tax has jumped to £135, a significant increase from the previous £20 for hybrids and £30 for petrol and diesel vehicles.

However, it’s not all doom and gloom with tax hikes. There are still some exemptions to car tax…

Vehicles with a Statutory Off-road Notification (SORN) won’t need to pay road tax for that specific vehicle. Plus, they can claim a road tax refund from the DVLA for any full months’ tax remaining.

Historic vehicles, typically those over 40 years old, may be eligible for road tax exemption. However, this isn’t automatic – drivers must apply once their car meets the criteria.

Drivers with disabilities: Drivers can seek exemption from road tax if they are in receipt of:

• The higher rate mobility component of Disability Living Allowance
• The higher rate mobility component of Child Disability Payment
• The enhanced rate mobility component of Personal Independence Payment (PIP)
• The enhanced rate mobility component of Adult Disability Payment (ADP)
• Armed Forces Independence Payment
• War Pensioners’ Mobility Supplement
• Drivers can also apply for a 50% vehicle tax reduction if they receive the standard rate mobility component of PIP or the enhanced rate mobility component of ADP. For more information, visit Gov.uk’s ‘Financial help if you’re disabled’ section here.