VED Changes 2025: How New Tax Rules Impact Motor Finance and Leasing
2025-03-31
Yahoo Finance
The 2025 VED changes bring significant updates to motor finance and leasing. Petrol and diesel cars emitting over 255g/km CO2 will face a first-year tax hike from £2,745 to £5,490. Meanwhile, new electric vehicles (EVs) will no longer be exempt, incurring a £10 'showroom tax' in their first year. EVs priced above £40,000 will also be subject to new tax rules, affecting their overall cost. These changes will have a substantial impact on the automotive industry, particularly for those involved in motor finance and leasing. With the increasing focus on electric vehicles and reducing carbon emissions, it's essential to understand the implications of these VED changes on the market. Key terms: electric vehicles, motor finance, VED changes
