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Drivers of 59 cars to be taxed £2,745 - full list including Ford, Toyota and VW

Car tax rates are changing in 2025

Well, back in late October, Chancellor Rachel Reeves announced that drivers of new petrol, diesel and hybrid vehicles would face higher first-year tax rates. The Budget document also chimed in, clarifying: "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." The update announced: "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."

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