New car tax changes set to take effect in the UK from 1 April 2024 will impact millions of vehicle owners, particularly those with high-emission cars and electric vehicles (EVs). These adjustments, part of a broader tax reform, involve significant increases in Vehicle Excise Duty (VED), with some drivers facing tax rises of thousands of pounds.
While the full impact remains unclear for many motorists, reports from BBC Morning Live and DevonLive have highlighted key areas of concern, including new tax brackets, exemptions, and potential cost-saving measures. BBC journalist Matt Allwright provided further details, explaining how these changes will be applied and who will be most affected.
Higher Car Tax Rates for High-Emission Vehicles
From 1 April 2024, VED rates will increase for vehicles with high CO₂ emissions. The tax on larger, high-emission cars will rise from £2,475 to £5,490 for the first year, nearly doubling.
Matt Allwright addressed these changes, clarifying which drivers will be most affected:
“This is one of those headlines that need unpicking.”
He explained that the increases apply mainly to specific new cars, as first-year road tax is based on engine size and emissions levels.
“They’re talking about specific cars and new cars, because they pay more in road tax upfront in that first year.
“The big cars, that chuck out the most CO₂, after 1st of April that’s going to go from £2,475 to £5,490. That’s the biggest car you can dream of. For most of us, that’s not going to apply.”
For smaller vehicles with average emissions, tax rates will also rise:
“Rates for a new car with average emissions will go from £270 to £540. That’s doubling but it’s still not that £418 increase (that other cars are facing).”
Electric Vehicle Owners Will Start Paying Road Tax
A key change in the tax system, as highlighted by BBC expert Matt Allwright, is the inclusion of electric vehicles (EVs) in VED. Until now, EVs registered after 1 April 2017 were exempt from road tax, but from April 2024, they will be required to pay £195 per year.
For new electric vehicles purchased after 1 April 2024, the first-year tax will be £10 before increasing to £195 in the following years.
Potential Loophole for Some Drivers
Allwright suggested that some vehicle owners might be able to delay the tax increase for a year. He encouraged motorists to check their renewal dates to see if they could benefit from re-taxing before 1 April.
“We reckon if you manage to retax it before the 1st of April you might save that for one year.”
The government’s decision to adjust car tax rates aligns with efforts to reduce carbon emissions and ensure fair contributions from all vehicle owners, including EV drivers. High-emission vehicles face higher charges as part of the UK’s environmental policies, while the new EV tax responds to the growing number of electric cars on the road.
