Skip advert
Advertisement

Road tax set to rise in April: here’s how much more you’ll pay

Drivers with newer cars will now pay £10 more per year, although the biggest gas guzzlers fare even worse

Road tax documentation

Road tax – officially known as Vehicle Excise Duty (VED)  – is set to rise in April 2024. It’s now been confirmed that the biggest gas guzzlers will be charged an additional £140 and that yearly rates will rise in-line with the UK’s high level of inflation.

So what does this mean? Well, Chancellor Jeremy Hunt MP announced last November in the Government’s Autumn Statement that Vehicle Excise Duty (VED) would rise in-line with inflation in 2024. HM Treasury has confirmed to Auto Express that given inflation has been as high as 6 per cent in recent months, VED has risen by £10 for 2024.

Advertisement - Article continues below

This brings the yearly fee (paid between years two and six of ownership) for non-zero emissions vehicles bought after March 2017 to £190, up from £180. Plug-in hybrid cars still get a £10 discount, meaning drivers will pay the same as petrol and diesel car owners did last year. Electric cars and hydrogen fuel cell cars remain exempt from VED for one more year, although this tax break will end in 2025.

Cars that find themselves liable for the ‘luxury car’ tax surcharge aren’t so lucky, however, as the additional £390 payment is now confirmed to have risen to £410, Therefore, cars registered after April 2017 that had a list price in excess of £40,000 will have to pay a huge £600 a year in yearly road tax. Expensive EVs currently escape this surcharge, but it’s likely this will no longer be the case when they become liable for VED as of April 2025.

That’s not all, as the first annual fee (which is only for brand new vehicles) has also gone up, too. Once again, zero-emissions cars are spared the one-off charge – only for one more year, might we add – but the Treasury has confirmed that the biggest gas guzzlers (those emitting over 255g of CO2/km) will be charged £140 more than last year, with the first-year rate of VED rising to as much as £2,745.

Older cars registered before April 2017 also see rises in-line with inflation; vehicles of this age emitting less than 100g of CO2/km will still be exempt from VED payments, although there are indeed increases elsewhere across the board. Classic cars aged over 40 years old still manage to escape the road tax charge, though.

Want the latest car news in your inbox? Sign up to the free Auto Express email newsletter...

Skip advert
Advertisement
Consumer reporter

Tom is Auto Express' Consumer reporter, meaning he spends his time investigating the stories that matter to all motorists - enthusiasts or otherwise. An ex-BBC journalist and Multimedia Journalism graduate, Tom previously wrote for partner sites Carbuyer and DrivingElectric and you may also spot him throwing away his dignity by filming videos for the Auto Express social media channels.

Skip advert
Advertisement

Recommended

Faulty smart motorway tech putting drivers in danger
Smart motorway
News

Faulty smart motorway tech putting drivers in danger

BBC’s Panorama finds smart motorway tech is putting drivers at risk every day, with 397 power outages in last two years
22 Apr 2024
Labour to U-turn on 20mph speed limit in Wales after harsh criticism
Welsh 20mph zone road sign
News

Labour to U-turn on 20mph speed limit in Wales after harsh criticism

Wales’ Transport Secretary, Ken Skates says Labour will reverse its blanket 20mph rules “as soon as we can”
22 Apr 2024
Government says ‘no’ to new cash incentives for electric car buyers
Parliament
News

Government says ‘no’ to new cash incentives for electric car buyers

A Lords Committee report backing car-makers’ calls for discounts to boost EV sales falls on deaf ears
19 Apr 2024
Tesla slashes Supercharger membership cost with 42 sites now open to all EVs
Tesla Superchargers
News

Tesla slashes Supercharger membership cost with 42 sites now open to all EVs

Tesla has cut the costs of its Supercharger Membership, which grants access to lower charging rates, by £2 per month
19 Apr 2024

Most Popular

Car Deal of the Day: sensational BMW M2 is a bargain at this price!
BMW M2 - front tracking
News

Car Deal of the Day: sensational BMW M2 is a bargain at this price!

Our Day of the Day for 18 April is the formidable BMW M2 performance car
18 Apr 2024
New 2024 Hyundai Santa Fe goes on sale with specs and prices announced
New Hyundai Santa Fe - front
News

New 2024 Hyundai Santa Fe goes on sale with specs and prices announced

The big, bold seven-seater starts from £46,775, and is available with full-hybrid and plug-in hybrid power
18 Apr 2024
Best small SUVs to buy 2024
Best small SUVs - header image
Best cars & vans

Best small SUVs to buy 2024

There's a huge range of small SUVs out there, so we’ve picked out the very best
19 Apr 2024