Company Car

2025 Vehicle Tax Changes

07/03/2025 10:59, by Ross@carnatics

Car tax disc changes: Two days to go ...

Starting 1st April 2025, the UK will introduce significant changes to its vehicle tax system, shifting to an emissions-based model. Vehicles will be taxed based on their CO2 emissions, with higher taxes for polluting cars and lower rates for eco-friendly vehicles like electric and low-emission models. This move aims to encourage greener transport and help the UK achieve net-zero carbon emissions by 2050. Petrol and diesel car owners, particularly those with older, high-emission vehicles, may face higher tax bills, while electric vehicle (EV) owners will continue to benefit from tax exemptions. Company car drivers and businesses will also see adjustments to company car tax. These changes will incentivize the adoption of electric and hybrid vehicles, reducing air pollution and supporting the shift to a cleaner, more sustainable transport system.

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