The UK road tax petrol 2025 changes are now officially in place, and they mark one of the biggest revisions to the Vehicle Excise Duty (VED) rates for petrol vehicles in recent years. As part of the UK government’s strategy to encourage the adoption of low-emission vehicles, higher VED rates now apply to several categories of internal combustion engine (ICE) vehicles, especially petrol-powered cars.
If you’re driving a petrol vehicle in the UK, this update affects you directly. Whether you’re buying a new car or renewing your tax for an older model, understanding the new road tax structure is essential to avoiding surprises. These reforms apply to both new registrations and annual renewals starting April 1, 2025.
The UK road tax petrol 2025 change is part of a broader environmental push and affects how vehicle taxes are calculated based on CO₂ emissions. Here’s what has changed and how it impacts petrol car owners across the country.
What Are the New VED Rates for 2025?
Starting in April 2025, the VED structure for petrol cars in the UK has been updated based on emission bands and car price brackets. The first-year VED rates for new petrol vehicles now range from £140 to over £2,605 depending on CO₂ output. Cars with higher emissions will now attract significantly higher taxes compared to cleaner petrol models.
Here’s an overview of the new VED brackets:
| CO₂ Emissions (g/km) | First-Year VED (2025) | Standard Rate (From Year 2) |
|---|---|---|
| 0–50 | £10 | £180 |
| 51–75 | £25 | £180 |
| 76–150 | £140 | £180 |
| 151–170 | £645 | £180 |
| 171–190 | £1,040 | £180 |
| 191–225 | £1,565 | £180 |
| 226–255 | £2,220 | £180 |
| Over 255 | £2,605 | £180 |
Vehicles priced over £40,000 continue to incur an additional £390 annual supplement for five years, regardless of emissions.
Why Has Road Tax Increased for Petrol Cars?
The rise in UK road tax petrol 2025 rates is part of the government’s broader goal to promote sustainable transport. With petrol cars contributing significantly to road-related CO₂ emissions, the revised VED policy aims to:
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Encourage a shift towards electric and hybrid vehicles
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Penalize high-emission vehicles more heavily
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Fund low-emission public transport and infrastructure projects
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Align UK emissions policies with net-zero carbon targets by 2050
These steps are intended to reshape buyer behavior over the long term, making greener vehicles more financially attractive than traditional petrol cars.
Who Is Affected by the VED Road Tax Changes?
The UK road tax petrol 2025 changes impact:
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New buyers of petrol-powered vehicles registering from April 1, 2025
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Current owners renewing their annual VED for existing petrol vehicles
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Fleet owners managing large numbers of company cars
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Used car buyers (in cases where high-emission vehicles are resold)
Whether you drive a small hatchback or a premium sedan, if your car uses petrol, your road tax bill is likely to be higher than in previous years unless you drive a low-emission model.
Tips for Petrol Vehicle Owners
Navigating the new VED system doesn’t have to be complicated. Here’s what you can do to manage your UK road tax petrol 2025 obligations:
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Check your CO₂ emissions rating using your V5C logbook or manufacturer documents
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Budget for higher tax costs if your car exceeds 150g/km emissions
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Consider switching to a hybrid or electric model to enjoy lower VED rates
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Buy a compliant car if shopping for a new or used petrol vehicle
These practical steps can help you stay compliant and minimize the financial impact under the new VED regime.
Environmental and Economic Impacts
From an environmental standpoint, the UK road tax petrol 2025 changes are already showing results. Sales of low-emission vehicles have risen, and average emissions from new car registrations have begun to decline. Economically, the raised road tax also contributes to government funding for green infrastructure, EV charging points, and improved urban transport.
The government is expected to continue reviewing and updating car policy each year, based on pollution trends and market shifts. Staying informed is the best way to manage both compliance and cost-effectiveness.
FAQs
What is the UK road tax petrol 2025?
It refers to the updated VED (Vehicle Excise Duty) rates for petrol vehicles in the UK, effective from April 2025.
Who will pay more under the new VED rates?
Owners of petrol vehicles with emissions above 150g/km will face higher first-year VED and may also pay additional charges if the vehicle value exceeds £40,000.
Are existing petrol cars affected?
Yes, even if your car was purchased before 2025, you may still face changes in your annual standard VED renewal.
How does this impact hybrid and electric cars?
Electric vehicles remain exempt from first-year VED and most annual charges. Hybrids receive lower rates based on their CO₂ emissions.
Can I avoid the higher road tax?
To avoid higher road tax, consider buying a lower-emission petrol car, a hybrid, or fully electric vehicle.
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