Vehicle Excise Duty first-year rates for cars from 1 April 2025
This tax information and impact note is about changes to first-year Vehicle Excise Duty rates to widen the difference between zero-emission, hybrid and internal combustion engine cars.
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Vehicle Excise Duty first-year rates are paid for the first year of a car’s lifecycle, at the point of registration, and vary based on emissions. From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars.
From 1 April 2025, zero-emission cars will pay the lowest first-year rate. Rates for cars with CO2 emissions of 1 to 50 grams per kilometre and 51 to 75 grams per kilometre, including hybrid vehicles, will increase to bring them closer to higher emitting cars. Cars in the bands for CO2 emissions of 76 to 90 grams per kilometre and above will pay double the equivalent rates from 2024 to 2025.