New car tax changes come in next April, and some parts of the UK are set to be worse-hit than others
Motorists living in certain UK areas are set to pay more than those elsewhere when new car tax changes come into effect in less than four months’ time. According to new data from Go.Compare, drivers in Mid Ulster will pay the highest first-year Vehicle Excise Duty (VED) rates compared to the rest of the UK.
Drivers in the region are likely to pay an average of £689 more from next spring, and although location doesn’t directly impact the amount of tax charged to road users, the data shows which areas could be more affected by changes based on cars usually purchased there.
Areas where drivers tend to favour cars that emit larger amounts of CO2 will pay more than regions where motorists opt for cleaner models, the Express reports. Go.Compare analysed Department for Transport (DfT) sales figures on the number of new private vehicles registered in each region over the first half of the 2024 tax year.
Experts then applied the existing and upcoming first-year rates for VED to common purchases to estimate how much more motorists will pay if buying habits remain the same.
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. If you live in a region where buyers tend to go for high CO2 cars, then drivers in your area will be the most impacted by the rise.”
Here are the top 10 UK areas set to be most impacted by the new first-year VED rates from April, and how much extra drivers can expect to pay:
- Mid-Ulster – £689.00
- Inner London – £625.94
- Windsor and Maidenhead – £538.25
- Surrey – £514.34
- Cheshire East – £510.89
- Fermanagh and Omagh – £502.25
- Aberdeenshire – £499.28
- Newry, Mourne and Down – £494.59
- Shropshire – £494.52
- Buckinghamshire – £489.05
Tom added: “If you’re worried about how the changes will affect you, there are ways to minimise the impact on your finances. For instance, consider purchasing a low-emissions car that will place your vehicle in the cheaper tax bands.
“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.”
