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Millions of road users face higher road tax after latest budget

By Tom Gibson | November 22, 2022

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The changes were announced by Chancellor Jeremy Hunt and will take effect from April 2025

Millions of road users face higher road tax after latest budget

Zero and low emission cars registered between 1st March 2001 and 30th March 2017 will no longer be exempt from road tax after Chancellor, Jeremy Hunt, announced changes in his budget last week.

These cars that were previously in Band A will be moved into Band B, which is currently charged at £20 per year.

Popular models such as the Ford Fiesta, Audi A3, Dacia Sandero, Citroen C4, Volkswagen Golf and Nissan Qashqai will be affected.

As we reported last week, electric vehicles will also be charged for the first time under Mr Hunt’s plans. The change, which will take effect from April 2025, applies to electric cars, vans and motorcycles.

Electric cars and vans are currently exempt from both the annual £165 standard rate and the £335 premium rate which is reserved for new cars that are sold for £40,000 or more.

Under the new rules new zero emission cars registered after 1st April 2025 will pay the lowest first year rate of tax, which is currently £10 a year.

Don't miss your tax renewal, update your garage here!

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