UK Driving Laws 2025 Update: VED, EV Taxes, Road Safety

What Are the Key Updates for Drivers in 2025?

In 2025, there will be important changes to UK driving laws. These updates will affect drivers all over the country. The goal is to improve road safety, lower emissions, and make driving better on UK roads. Here’s what you should know about the new rules and what they mean for drivers, including those with electric cars and hybrid vehicles.

Vehicle Excise Duty (VED) Changes for Electric Vehicles

Starting in April 2025, drivers of electric vehicles (EVs) will have to pay the vehicle excise duty (VED). In the first year, new EVs will have a fee of £10. After that, the standard rate will be £195 each year. If an EV has a list price over £40,000, the owner will pay the expensive car supplement, just like owners of petrol and diesel cars. This change in tax affects both private and company car users.

What About Hybrid Cars?

Drivers of hybrid vehicles, which use both petrol or diesel engines and electric power, will keep paying lower VED rates. These rates depend on their emissions levels. Low emission cars with the smallest engine size will enjoy lower tax rates. This encourages more people to use these cars on UK roads.

End of Congestion Charge Exemption for Zero Emission Cars

From December 2025, electric cars and other zero emission vehicles will need to pay the London congestion charge. This means that all drivers entering the congestion zone must pay the daily fee, no matter how their vehicle affects the environment. Local authorities are also thinking about adding congestion charges to more urban areas to help control traffic and pollution.

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Road Tax and VED Updates for Diesel Vehicles

Diesel vehicles, mainly the older ones, will see an increase in road tax VED rates. This is because they have a bigger impact on the environment. Owners of diesel cars should think about switching to cleaner options like hybrid cars or electric vehicles. Doing this can help them save on taxes and meet tougher emissions rules.

What About Light Goods Vehicles and Motorcycles?

• Light goods vehicles (LGVs): New VED rates will depend on the emissions and weight of the vehicle.
• Motorcycles: The standard annual rate will change based on engine size. Smaller motorcycles will see small increases, while those with higher emissions will see larger increases.

Digital Driving Licences: A First for UK Drivers

In 2025, the UK will launch digital driving licences. You will be able to store these licences in a safe GOV.UK digital wallet. This will let drivers access their licence digitally for the first time. Physical licences will still be offered, but this change aims to provide more convenience and security. It will include features like real-time updates and safety features, such as facial recognition.

Enhanced Road Safety Measures

To make roads safer, the government is putting in place tougher laws for public roads, especially for heavy goods vehicles (HGVs). The new rules require HGVs to have better safety gear. This includes blind spot cameras and systems that help detect cyclists. These changes hope to cut down accidents that happen with cyclists and pedestrians.

New Vehicle Registration Plates

In January 2025, the UK will launch the '25' registration plate. It will be followed by the '75' plate in September. This is a new beginning for people buying new cars. It shows that there is still innovation happening in motor vehicles.

AA Price Guarantee and Fuel Price Transparency

The government will launch the AA price guarantee in December 2025. This program will require fuel stations to give real-time updates on prices. It aims to ensure that EV drivers, diesel vehicle owners, and hybrid car users can see clear prices. This way, they can make better choices about refuelling and recharging.

Zero Emission Vehicle Mandate

Under the zero emission vehicle (ZEV) rule, car makers have to make sure that 22% of new cars and 10% of new vans sold in the UK are zero emission by April 2025. This plan is meant to increase the number of new EVs on the road. It will also push manufacturers to focus more on low and zero emission models.

How Does This Impact the Market?

The change will make more affordable EVs and hybrids available. This will help reduce costs for people buying EVs for the first time. However, it could also slow down the production of petrol and diesel vehicles. This might affect how many of those vehicles are available in the future.

Changes to Company Car Tax (BIK Rates)

Benefit-in-kind (BIK) tax rates for company cars will go up for electric vehicles (EVs) and hybrids starting in 2025. Even though these rates will still be lower than those for petrol and diesel cars, the increases are designed to create a fairer tax system and encourage more people to choose greener vehicles.

Support for Heavy Goods Vehicles (HGVs)

The government has revealed new subsidies for HGV operators. These will help them move to low emission vehicles. The subsidies will pay for part of the cost of electric and hybrid HGVs. This change will make it easier for them to meet the tougher emissions rules coming in 2025.

FAQs About UK Driving Law Changes in 2025