As we move towards 2025, UK drivers will face a significant shake-up in road laws and regulations, with new legislation designed to improve road safety, reduce emissions, and generate additional revenue for government coffers. These changes are set to impact everyone on the road, from everyday commuters to electric vehicle owners, and they could come at a much higher cost for some.
Key Changes You Need to Know for 2025:
1. Congestion Charge Exemption for Green
Vehicles Ends One of the most significant shifts coming next year is the end of the congestion charge exemption for electric and hydrogen-fuelled vehicles. Currently, electric vehicle (EV) owners enjoy a free pass through London’s congestion charging zone, but this perk will expire on December 24, 2025. After that, EV owners will be required to pay the £15 daily charge to enter the city’s central zones. However, drivers will have a brief reprieve, as the congestion zone will remain free from December 25 to January 1, allowing a last-minute holiday exemption.
2. Electric Vehicle Owners Face Higher “Car Tax”
In a move that will affect many EV owners, starting April 1, 2025, new electric vehicles will no longer enjoy the tax-free status they once had. Under the new rules, all electric cars registered on or after April 1 will be subject to a £10 annual vehicle excise duty (VED) for the first year. This change is part of a broader push to ensure that all vehicles contribute fairly to the national transport infrastructure, especially as EV ownership grows.
But that’s not all. Vehicles that have a list price of over £40,000 will also face the Expensive Car Supplement, an additional charge of £410. This supplement, which was previously waived for EVs, could significantly increase the cost for high-end electric vehicle owners.
3. Benefit in Kind (BiK) Tax Set to Rise
For those who drive company cars, 2025 will bring an unwelcome tax increase. The Benefit in Kind (BiK) tax, which is applied to drivers who receive a car as part of their salary sacrifice scheme, will rise from 2% to 3% in April 2025. The tax is determined by a vehicle’s CO2 emissions, and with many cars producing more emissions, this could mean significant increases in tax liabilities for many company car users. The BiK rate could go as high as 37% for cars emitting over 154g/km of CO2, impacting higher-end vehicles and large petrol or diesel cars.
4. Other Key Changes for 2025
While these headline changes are likely to have the most immediate financial impact, there are other adjustments on the horizon. Private and public vehicles will be subject to stricter emission controls, with new laws set to limit pollutants and improve air quality. Heavy-duty vehicles, such as lorries and buses, will also face tighter regulations, including the introduction of new tachograph rules to monitor driving times and emissions more effectively.
For the safety-conscious, the changes should also mean safer roads in the long run. A raft of new road safety measures is expected to take effect in 2025, including expanded 20mph zones and continued enforcement of laws aimed at reducing vehicle emissions. The goal is to lower air pollution and reduce traffic-related incidents, ultimately benefiting all road users.
2025 promises to be a year of significant transition for UK drivers. While the new laws are geared towards reducing emissions and improving road safety, they will also bring financial challenges for many drivers. The end of exemptions for electric vehicles, the introduction of new taxes, and the increase in BiK tax could make motoring more expensive for some.
Whether you’re an EV owner, a company car driver, or just a daily commuter, these new laws will undoubtedly affect the way you drive and the costs associated with it.
Read more:
Teen Files Lawsuit To Prevent Sale Of Shohei Ohtani’S Historic 50/50 Baseball
Federal Appeals Court Reinstates Corporate Transparency Law, Expands Anti-Money Laundering Efforts
Federal Judiciary Leadership Slams Biden’S Veto Of Bill To Expand U.S. Courts