UK vehicle Tax Changes in 2025

A major reform of the UK vehicle tax changes in 2025. New VED regulations during 2025 will change the cost of tax payments for all fuel types including electric cars and hybrids and traditional motor vehicles.

From April 1, 2025, electric vehicles will lose their tax exemption status and owners of high-emission cars will need to pay increasingly higher fees. The procedure for updating your vehicle tax class with the DVLA or changing your address needs to be done offline.

What are the changes to road tax 2025 in the UK?

Beginning in April 2025 all newly registered vehicles must pay a £10 yearly amount for Vehicle Excise Duty (known as road tax) during their first year of ownership. From the second year on the tax rate will increase to £195 annually.

For electric vehicles (EVs):

• Beginning in April 2025 EVs registered from 2017 through 2024 will be subject to an annual tax fee of £195.
• EVs registered before 2017 won’t need to pay more than £20 each year for their road tax.

The government plans to modify VED tax prices according to the Rate of Price Inflation. Zero-emission vehicles will maintain their lowest first-year Vehicle Excise Duty (VED) rate of £10 throughout the time period of 2025 to 2030.

How do I change Tax Class of a Vehicle UK

In the UK vehicle tax changes, you must follow specific steps based on specific conditions. 

Factors Affecting Vehicle Tax Class

• Engine size (cc)
• Fuel type
• Weight (for goods vehicles)
• Number of seats (for buses)
• Vehicle usage (e.g., using a minibus for profit)

How to Change Vehicle Tax Class

The following procedure to modify your vehicle’s tax class includes these steps,

• Submit your V5C logbook and MOT certificate with proof of changes and form V70 to DVLA  (if required) before your tax period ends.
• To avoid tax timeliness issues apply for changes at the Post Office with required documentation.
• Changing to/from a disabled tax class – Apply at a Post Office or by post, providing proof of eligibility.

Can I change my Vehicle Tax Class Online?

The process of online vehicle tax class modification has not been possible until now.

At the moment you cannot modify your vehicle tax class through an online platform. The change of tax class requires you to file documents through mail service or Post Office based upon your specific conditions.

How to Change Your Vehicle Tax Class

• Send the V5C logbook and proof of change including MOT certificate and fuel type update as well as form V70 (if required) to DVLA through the postal service.
• People who need to change their vehicle tax class must visit any Post Office handling vehicle tax services with their necessary paperwork.

How to Change Address for Vehicle Tax UK

Changing your vehicle tax address in Great Britain requires following these specific steps.

Online:

Visit the DVhe process to change your vehicle tax address in the UK consists of these three steps:

• Log in or access the section to change your address.
• Complete the process through the vehicle registration number system together with the new address information.
• Submit your changes.

By Mail

• Complete a V5C Form (logbook).
• Complete the updated address section on the form.
• Mail the document to the DVLA using the form address.
• Await confirmation of your updated V5C.

How to Change Crown Vehicle UK Tax

Modifications for vehicle taxation on Crown government vehicles should be processed using this procedure:

• Contact the Relevant: Reaching out to the department or team dealing with fleet management.
• Provide Vehicle Details: Send the complete information about your car including its registration number, model and the reason for the change. 
• Complete Form: Fill out all necessary forms according to the departmental procedures.
• Submit Documentation: Send the completed forms and documents via email and post.
• Await Confirmation: The authority requires confirmation of any reported information.
• Important Note: Vehicle exemption under Crown status includes tax exemption together with potential special operational requirements. You should contact the DVLA for extra clarification regarding this matter.

Upcoming Changes to Vehicle Excise Duty (VED) in the UK from April 2025

The UK Vehicle Excise Duty system will experience substantial revisions starting April 1, 2025, as determined in February 2025. Here’s an overview:

Electric Vehicles (EVs):

The VED exemption for EVs ends on April 1, 2025 where newly registered vehicles will start paying the VED rates. The initial annual charge for new electric vehicles amounts to £10 during the first year until the second year begins when the annual fee rises to £195.

Battery-powered electric vehicles priced above £40,000 must pay an extra yearly fee of £355 that starts during their second registration year.

Hybrid Vehicles:

HEVs and other cars with CO₂ emissions between 1–50g/km now have a £110 first-year VED rate. The annual charges for these vehicles will follow the same pattern as conventional engine cars through future years using their CO₂ emission metrics.

High Emission Vehicles:

Vehicle owners must pay £5,490 as first-year VED tax for all vehicles which produce more than 255g/km CO₂ emissions.

General Adjustments:

All VED rates under this model will adjust according to inflation rates which will impact different vehicle groups.

The government established these reforms to drive zero-emission vehicle adoption while maintaining equal financial responsibilities across the changing automotive sector.

Conclusion

In 2025, UK vehicle tax changes will affect all categories including electric, hybrid and high-emission cars. The tax exemption for electric cars will be no more. Updated vehicle excise duty (VED) for hybrid and high emission will be applied according to their CO2 emission. The aim behind these changes is to encourage zero-emission vehicles.

FAQs

How will the new VED tax bands affect hybrid car owners?

Hybrid vehicles emitting 1 to 50g/km CO2 will pay 110 in the first year, then follow standard VED rates, and so on.

How does the new VED system differ from the previous CO2-based system?

In the past CO2 emission determined the first year tax. From 2025, electric vehicles will also be taxed and rates will adjust for inflation.

Can I change my vehicle tax class online?

No, To change your vehicle you must apply at a post office.

How can I update my address for vehicle tax?

You can update it online through the DVLA website or by mailing a completed V5C logbook form. 

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