26.02.2025

DON'T GET CAUGHT OUT.

From 1st April 2025 the Government has announced that changes to Vehicle Excise Duty (VED) also known as Car Tax or Road Fund Licence, will be made.

Currently, all electric cars and zero emissions vehicles have been exempt and plug-in hybrid vehicles receive their VED at a discounted rate but from April that will change. As of 1st April 2025, the cheapest £0 VED rate will be abolished, meaning all cars built after April 2017 – regardless of whether they are petrol, diesel, hybrid or electric-powered – will pay the standard flat rate of road tax. This means that EVs will no longer be exempt from VED and hybrid cars no longer benefit from a slight discount.

Electric vehicles worth over £40,000 will be liable for the extra Road Fund Licence charge, see more details below.

How this will effect you:

  • If your car was registered between March 2001 and before April 2017 and the CO2 emissions of your vehicle are up to 50g/km (VED Band A), you'll be moved to Band B which will mean your Annual Rate will be £20. Other vehicles with emissions higher than 50g/km will be taxed depending on their emission level.

  • If your car was registered between April 2017 and 31 March 2025, you'll pay the new standard rate of £195.

  • If you register a car from 1st April 2025, your first year of tax will be included in the cost price of the vehicle and will start from £10 going up to £5,490, depending on the CO2 emissions. (See VED Tax Bands table) From the second year, you'll pay the new standard rate of £195.

  • If you register an electric car worth over £40,000 from 1st April 2025 it will be liable for the extra Road Fund Licence charge, also known as the Luxury Car Tax, which is an additional £425 per year on top of new standard £195 VED payments for years two to six of the vehicle's life. Electric vehicles are exempt from this extra charge if registered before 1st April 2025.
VED Tax Bands Table from April 2025

BUY YOUR NEW FORD NOW & BENEFIT FROM...

  • A reduced rate of tax until next year
  • Immediate delivery on a wide range of stock vehicles
  • Additional savings on stock models
  • 0% APR available on selected models
  • Up to £4,000 Finance Deposit Allowance
  • Low rate finance across the Ford range
  • 5 Years FREE Service Plan on EVs
  • Extra £500 Part Exchange Bonus*
  • EVs over £40,000 will be exempt from the additional Luxury Vehicle tax

Explore the latest offers today

How Can We Help You?

• Explain the changes in detail
• Discuss your requirements & show you how you will benefit from ordering a new vehicle now
• Order a new vehicle from UK stock with quick delivery
• Help you get ahead of the tax changes

Speak to one of our Sales Team today

and we'll help you to understand the upcoming changes

*Receive an Extra £500 for your Part Exchange when you take a test drive in an electric vehicle before 31/03/25.