Up To £760 Tax Shock Warned For Owners Of Cars With These Number Plates: Check Details!

Up To £760 Tax Shock Warned For Owners Of Cars With These Number Plates: Starting April 1, 2025, UK car owners will experience a major change in how much they pay to drive. The government is introducing a new structure for Vehicle Excise Duty (VED)—commonly known as car tax. Depending on your car’s emissions, list price, and registration date, you could face a first-year tax shock of up to £760—or even more.

If you’re buying a car with the “25” or “75” number plates (indicating March and September 2025 registrations), you’re in the spotlight. These plates mark the start of the new tax structure, and knowing what to expect can help you plan and save.

Whether you’re a parent purchasing a family car, a fleet manager planning ahead, or a motorist looking to upgrade, this guide explains everything in a simple, practical way.

Up To £760 Tax Shock Warned For Owners Of Cars With These Number Plates

Aspect	Details
Effective Date	April 1, 2025
First-Year VED (CO₂-dependent)	Up to £5,490
Standard Rate (Year 2+)	£195 annually
Electric Vehicles (EVs)	£10 in Year 1; £195 from Year 2
Expensive Car Supplement	£425/year for 5 years for vehicles > £40,000
New Affected Plates	“25” (March 2025) and “75” (Sept 2025)
Penalty for Non-payment	£80 fine minimum
Official Resource	GOV.UK Vehicle Tax Rate Tables

The UK’s 2025 VED changes are designed to support environmental goals and ensure fairness across all vehicle types. However, the cost for drivers—especially new buyers—can be steep. If you’re eyeing a car with a “25” or “75” plate, understanding your VED responsibilities could save you hundreds of pounds per year.

What Is Vehicle Excise Duty (VED)?

Vehicle Excise Duty (VED) is a type of road tax paid by anyone who drives or parks their car on UK public roads. It’s calculated based on your car’s CO₂ emissions, fuel type, and list price. The idea is simple: the more pollution your car produces, the more tax you pay.

Until now, electric vehicles were mostly exempt from VED. That changes in 2025.

Updated 2025 VED Bands: First-Year Charges

First-year tax is based on how much CO₂ your car emits. Here’s how it breaks down:

CO₂ Emissions (g/km)	First-Year VED
0	£10
1–50	£110
51–75	£130
76–90	£270
91–100	£350
101–110	£390
111–130	£440
131–150	£540
151–170	£1,360
171–190	£2,190
191–225	£3,300
226–255	£4,680
Over 255	£5,490

What Happens After the First Year?

After the first year, most vehicles move to a flat rate of £195 per year. It doesn’t matter how green or polluting your car is at that point—everyone pays the same, except for those who own more expensive cars.

EVs Will Now Be Taxed Too

Electric vehicles were once free from road tax, but that ends in 2025.

Here’s what EV owners can expect:

New EVs registered after April 1, 2025:
- First-year tax: £10
- Standard rate: £195 per year from Year 2 onward
EVs registered between 2017 and March 2025:
- Move to £195 annual rate
EVs registered before 2017:
- These may continue to benefit from lower fixed rates

EV drivers will also be hit with additional charges if their car originally cost over £40,000.

The Expensive Car Supplement

Cars that cost more than £40,000 (at time of first registration) attract a surcharge of £425 per year for five years, starting from the second year.

This applies to:

Luxury petrol and diesel cars
Many new electric vehicles (like Teslas, high-end SUVs)
High-spec hybrids and plug-in hybrids

Even if the current market value drops below £40,000, the supplement still applies if the original list price was over the limit.

What Do the “25” and “75” Plates Mean?

UK registration plates change twice a year:

“25” plate: Issued from March 1, 2025
“75” plate: Issued from September 1, 2025

These new plates indicate the car is subject to the 2025 tax rules. That means buyers picking up vehicles with these plates will likely be among the first to pay the new VED rates.

The Environmental Push Behind the Changes

The government aims to reduce road emissions as part of its plan to achieve Net Zero by 2050. These tax changes:

Encourage people to choose lower-emission or smaller vehicles
Bring EVs into line with other vehicles
Help fund road infrastructure as fuel duties decline

The shift is as much about climate goals as it is about maintaining revenue from road users.

Used Car Market Effects

The new rules will likely reshape the used car market:

Increased interest in pre-2025 EVs, which remain cheaper to tax
More value in second-hand cars under £40,000
Higher lease and finance costs for newer, taxed EVs and luxury cars

If you’re planning to buy a used car soon, it’s worth looking at vehicles registered before April 1, 2025, to take advantage of the current rates.

How to Save on VED in 2025 and Beyond

Here are smart tips to lower your tax bill:

Buy before April 2025 – Lock in today’s lower rates
Choose a car under £40,000 – Avoid the luxury car tax
Compare CO₂ emissions – Go for the greenest option in your budget
Lease instead of buying – Let leasing firms handle the VED
Declare SORN if unused – You won’t pay tax if your car is off the road

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FAQs

Q1: Will company cars be affected?

Yes. Company vehicles follow the same tax rules. Businesses should re-evaluate their fleets, especially EVs and executive models.

Q2: Do hybrids pay the same as petrol cars?

Yes. Most hybrids, including plug-in hybrids, will be taxed based on emissions and list price just like any other fuel type.

Q3: Can I avoid the expensive car supplement by buying used?

Not necessarily. If the car was originally registered after April 2025 and cost over £40,000, the surcharge still applies, even to second-hand buyers.