Car tax rates are changing in 2025
Fifty-nine cars from 24 brands, including popular manufacturers like Ford, BMW and Mercedes, are set to face a £2,745 car tax increase come April 2025. This is due to significant changes in Vehicle Excise Duty rates announced in the Autumn Budget by Labour.
This means common mid-market brands such as Ford and Toyota will have some models affected. Luxury brands like BMW, Mercedes and Audi will also feel the pinch. The move aims to encourage consumers to opt for electric vehicles and widen the gap between 'higher polluting' vehicles and EVs. The first-year tax figure is calculated based on the amount of carbon dioxide the vehicle produces.
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