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The UK Government missed an early opportunity to give the transition to zero-emission vehicles some welcome support, failing to reference the impending electric vehicle tax hikes or its recent ZEV Mandate consultation in today’s Spring Statement.

In the 2024 Autumn Budget, the Chancellor of the Exchequer outlined several tax changes that would impact the automotive sector. This announcement included changes to the Vehicle Excise Duty (VED) which will be effective from April 2025.

Changes to Vehicle Excise Duty, company car tax on double cab pick-up trucks and the approach to emissions testing of hybrid vehicles, were discussed as part of the BVRLA’s recent ‘Navigating New Vehicle Tax and Testing’ webinar. It can now be viewed online.

Vehicle Excise Duty and company car tax on double cab pick-up trucks are seeing changes from April 2025. Beyond this, the approach to emissions testing of hybrid vehicles is set to be updated, potentially resulting in revised official CO2 values.

Vehicle Excise Duty, company car tax on double cab pick-up trucks, and emissions testing of hybrid vehicles, are all set to see changes from April 2025.

The BVRLA would like to help clarify which vehicles are subject to the Expensive Car Supplement once the exemption for zero-emission vehicles is lifted after 1 April.

The Chancellor’s Budget in October announced changes to Vehicle Excise Duty (VED) and taxation of double-cab pickups, both of which are likely to impact BVRLA members and their customers. The BVRLA has updated its factsheets for company and fuel taxation to reflect the latest information.

Sharp increases in Vehicle Excise Duty (VED) announced by the Chancellor last month are expected to have a notable impact on the rental sector. Having targeted non-electric vehicles with high increases from April 2025, the revised VED rates were discussed as part of the BBC’s Wake Up to Money radio show last week.

Last week’s Budget was publicised beforehand as being a painful one, with difficult decisions needing to be made. Its contents demonstrated the challenging economic climate facing the nation, but did contain some green shoots around road transport decarbonisation.

From 1 April 2025, keepers of electric and low emission vehicles will need to pay vehicle tax in the same way as keepers of petrol and diesel vehicles.

The BVRLA has updated its Vehicle Excise Duty fact sheet to clarify which vehicles are subject to the Expensive Car Supplement once the exemption for zero-emission vehicles is lifted in 2025.

Last week Chancellor Jeremy Hunt set out the government’s tax and spending plans. The headline announcements in the Spring Budget spanned national insurance, childcare, and fuel duty. Of significance to BVRLA members are the plans to extend full expensing to rental and leasing, following extensive consultation including the BVRLA and other associations.