Motoring gets more expensive as car tax rises take effect and EVs lose exemption

Tax rules introduced last week mean many drivers - especially owners of electric vehicles (EVs) and new high-end cars - face hefty bills to get on the road.

- Shane Hickey

Someone who is buying a new 1-litre Ford Puma, for example, now has to pay £440 tax for the first year - up from £220.

An overhaul of the vehicle excise duty (VED) system came into effect on 1 April, introducing a number of new charges. Drivers of EVs have lost their exemption from the tax and also have to pay an "expensive car supplement" for five years if a new vehicle costs more than £40,000, which many do.

The move has prompted concern that people will be put off buying EVs. Buyers of petrol and diesel cars will face charges that are often double what they were last year if they buy a new vehicle.

How does VED work?

Sometimes called car tax, VED is paid every year by drivers of cars, vans, motorcycles and other vehicles for using the public roads in the UK.

How much you pay in VED depends on when your car was first registered. If it was between March 2001 and April 2017, you will pay a rate based on the amount of carbon dioxide emissions from the vehicle. The lower the emissions, the lower the tax. This applies to a car that was bought new before 2017 or a secondhand vehicle. The duty ranges from £20 up to £760.