By GB News (World News) | Created at 2024-12-29 16:06:02 | Updated at 2025-01-01 14:17:43
2 days ago
Certain motorists around the UK could face higher car tax hikes depending on where they live, with the average vehicle owner paying more from April 2025.
New data suggests that drivers in Mid Ulster, Northern Ireland, are set to face the highest car tax increases in the UK, with an average rise of £689 per vehicle next year.
The hike comes as part of new Vehicle Excise Duty (VED) rates announced in the Autumn Budget by Chancellor Rachel Reeves in October.
The new research reveals the impact will vary significantly across different regions, based on the types of vehicles typically purchased in each area.
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Certain drivers could face huge car tax hikes within months
DVLA
While the tax rates themselves don't vary by location, data shows that motorists in Mid Ulster will bear the heaviest burden due to their choice of vehicles with higher CO2 emissions.
The findings are based on Department for Transport data examining new private vehicle registrations in the first half of the 2024 tax year.
Inner London drivers will face the second-highest tax increase, with VED set to rise by £625 per vehicle, despite the Ultra Low Emission Zone (Ulez), indicating that motorists may prefer to pay daily charges instead of switching to electric vehicles.
The £625 rise in Inner London stands nearly £100 higher than the next most affected area.
At a regional level, London and Northern Ireland will experience the steepest VED increases overall.
The average tax rise across all of London will be £475 per car, while Northern Ireland drivers face an extra £454.
In contrast, the North East will see the lowest increases, with drivers paying an additional £384 per car on average. Welsh drivers will see prices rise by just under £400.
Tom Banks, car insurance expert at Go.Compare, said: "The increased VED rates mean most new car buyers will be paying a lot more than they were expecting in 2025.
Owners of the most polluting vehicles will face the largest car tax hikes next year
GETTY
Banks added that drivers could save on the expensive car tax hikes by purchasing a vehicle which produces zero or low rates of emissions.
He said: "If you can't purchase a suitable hybrid or EV, you could opt for a nearly new motor instead. This gives you that new car feeling for a fraction of the price, and will allow you to dodge the increased tax."
