UK drivers see VED tax hikes; electric cars now pay up to £620 annually, depending on cost.

As of April 1, 2025, UK drivers face higher Vehicle Excise Duty (VED) rates. Electric vehicles now pay a standard rate of £195 annually, with an additional £425 for those costing over £40,000 from year two to six. Petrol and diesel car taxes also increased, with a potential £150 hike annually for some. The changes affect how taxes are calculated based on vehicle registration dates and CO2 emissions, with some drivers receiving their first tax letters for electric vehicles.