Rachel Reeves Slaps British Drivers with Brutal £5,490 Car Tax Bombshell – Petrol and Diesel Owners Hit Hardest!

Less than three weeks ago, the government introduced new changes to car tax rules. Now, drivers across the UK are being reminded to check and understand these changes. If they don’t, they could end up paying a lot more money, especially if they own petrol or diesel cars. In some cases, drivers might pay thousands of pounds extra just because they’re not aware of the updates.

The Driver and Vehicle Licensing Agency (DVLA) posted a warning on X, which used to be called Twitter. They urged drivers to take action quickly by saying, “Don’t forget to pay your vehicle tax!” This reminder is important because not paying your car tax also known as Vehicle Excise Duty can lead to a fine. If you’re the registered owner of a car and you don’t pay the tax, you could be fined £80.

It gets even more serious if you drive your car on a public road without having paid the tax, and without declaring that the car is not being used (this is called a Statutory Off Road Notification, or SORN). In that case, you could be fined £1,000 or even more. The law says the fine can be five times the amount of tax you were supposed to pay, whichever is higher.

All these changes are part of a new plan announced by the Chancellor, Rachel Reeves. In the Autumn Statement last year, she explained that car tax rates would increase from April 1, 2025. The rates are going up based on the rate of inflation. This means people who drive cars, vans, or motorcycles will now have to pay more in tax than before.

There’s also a big change for electric car owners. For the first time, electric vehicles will no longer be exempt from car tax. This change was actually planned by the previous Conservative Government and former Chancellor Jeremy Hunt. They said the goal was to make the tax system more fair for all drivers, no matter what kind of car they have.

People who buy new cars after April 1, 2025, will see even bigger changes. The government is trying to encourage people to buy zero-emission vehicles like electric or hydrogen-powered cars. To do this, they are increasing the car tax for petrol and diesel vehicles, especially those that pollute more.

For example, if you buy a new electric or hydrogen fuel cell car, you’ll only have to pay £10 for the first year of car tax. This rate will stay the same until the year 2029 or 2030.

If you choose a plug-in hybrid car, you’ll pay more than £10, but still less than what petrol or diesel car owners will pay. For hybrids that release between 1 and 50 grams of CO2 per kilometre, the first-year tax will be £110.

But if you buy a new petrol or diesel car that releases more pollution, your first-year tax could double. For example, drivers of cars that produce more than 255 grams of CO2 per kilometre could pay as much as £5,490 in the first year alone. This is a huge increase compared to previous years.

Here’s a breakdown of how much car tax drivers will now pay in the first year, based on how much CO2 their car produces:

• For zero emissions (like electric cars), the tax goes from £0 to £10
• For very low emissions (1-50g/km), the tax increases from £10 to £110
• Slightly higher emissions (51-75g/km) now cost £130
• Cars that emit between 76-90g/km will pay £270
• Those emitting 91-100g/km will pay £350
• If your car emits between 101-110g/km, you’ll pay £390
• Between 111-130g/km now costs £440
• Between 131-150g/km, you’ll pay £540
• Between 151-170g/km, the tax jumps to £1,360
• Between 171-190g/km, it goes up to £2,190
• Cars emitting between 191-225g/km will be charged £3,300
• Between 226-255g/km, drivers will pay £4,680
• And for cars that emit over 255g/km, the tax will now be a whopping £5,490

This means anyone thinking about buying a new petrol or diesel car after April 1, 2025, needs to be prepared for much higher costs. These changes are meant to push more people toward choosing zero-emission vehicles, which are better for the environment and cheaper to tax.