New road tax rules and 7 other major changes coming to UK drivers in 2025 - including EV and safety rules

• 2025 will bring significant updates for UK drivers, affecting costs, regulations and technology
• New taxes and charges are set to impact vehicle owners, including electric car users
• The government is introducing new safety measures and requirements for commercial vehicles
• The changes will affect everything from road tax to emissions standards

The UK driving landscape is poised for significant changes in 2025, including new taxes, enhanced safety measures and advancements in technology.

These updates will affect not only the cost of driving but also how vehicles are used, monitored and managed on the roads.

Drivers should stay informed and ready to adapt to the evolving regulations shaping the future of transportation. Here’s what to expect in the year ahead.

Electric vehicles to pay Vehicle Excise Duty (VED) from April 2025

Starting in April 2025, electric vehicle (EV) owners will no longer be exempt from Vehicle Excise Duty (VED), commonly known as road tax.

Currently, EVs are free from this charge, but a new rate structure will see them pay a first-year rate of £10. Additionally, EVs priced over £40,000 will face the Expensive Car Supplement, which currently stands at £410.

This new measure aims to boost government revenue as the adoption of EVs increases, and other vehicles, such as diesel and petrol cars emitting over 76g/km of CO2, will face higher first-year taxes in 2025/26.

Read more: UK drivers to face DVLA road tax hikes next year

Fuel Duty freeze to continue until 2026

In a bid to alleviate the burden of rising fuel costs, the UK government will continue the freeze on fuel duty until March 2026. Fuel duty, which has remained at 52.95 pence per litre since January 2011, will not increase despite inflationary pressures.

Alongside this, a new scheme, Fuel Finder, will launch by the end of 2025, allowing drivers to access real-time updates on fuel prices and availability across UK petrol stations.

This initiative is designed to improve fuel price transparency and help consumers find the best deals.

Stay up-to-date with the latest UK news and culture with our free UK Today newsletter.

Benefit in Kind (BiK) tax rates to increase

Benefit in Kind (BiK) tax rates, which are applied to company cars, will see an increase in 2025/26. From April 2025, BiK rates will rise by 1% across all tax brackets, including for zero-emission vehicles.

Fully electric cars, for example, will face a BiK rate of 3% instead of the current 2%.

The increase in BiK rates is part of the government's ongoing effort to align tax structures with environmental goals, encouraging the adoption of low-emission vehicles.

HGV safety permits and new requirements

Heavy Goods Vehicles (HGVs) will be required to meet stricter safety standards under Transport for London’s (TfL) Direct Vision Standard (DVS) by May 2025.

This initiative is designed to improve road safety in Greater London by ensuring that HGVs have a better view of their surroundings.

Vehicles over 12 tonnes will need a minimum of a three-star rating for safety visibility or must install a Progressive Safe System. Failure to meet these standards will result in a Penalty Charge Notice.

Commercial vehicles to comply with new tachograph rules

From December 2024, commercial vehicles engaged in international journeys will be required to retrofit their vehicles with ‘smart’ tachographs.

These devices monitor driving times, speed and mileage, helping to ensure compliance with road safety regulations.

The new tachographs will include features such as enhanced anti-tampering mechanisms and the ability to track when a vehicle crosses borders, ensuring better monitoring of driving hours and safety standards.

Congestion charge exemption for Electric Vehicles ends in 2025

Electric and hydrogen fuel-cell vehicles currently enjoy exemption from London’s congestion charge,but this exemption will end on 25 December 2025.

Starting 2 January 2026, all vehicles, regardless of whether they are electric, will need to pay the £15 congestion charge when entering the city’s congestion zone.

The move has sparked debate, with many businesses urging the Mayor of London to reconsider the decision, especially for electric vans, to support businesses transitioning to greener fleets.

AI-powered safety cameras trial to end in March 2025

The UK government’s trial of AI-powered safety cameras, which began in 2021, will conclude in March 2025. These cameras use artificial intelligence to detect drivers who are not wearing seatbelts or using mobile phones while driving.

The cameras have been tested by 10 police forces across the UK, and data from the trial will be used to decide whether the technology will be rolled out nationwide. Offenders caught by these cameras can face hefty fines and penalty points.

Vehicle inspections for cars over five years old in Guernsey

Guernsey will implement a new inspection scheme in 2025 for all vehicles older than five years.

The inspections will ensure that vehicles meet the necessary safety and environmental standards, ensuring that they remain compliant with European regulations post-Brexit.

The inspection will take place every three years and is part of the island’s efforts to maintain road safety and environmental responsibility.

As we welcome in the New Year, it’s important for drivers to stay informed and prepared. How do you feel about the upcoming updates? Will they impact your driving habits or vehicle choices? Share your opinions in the comments section.