Here’s our round-up of what’s coming up in 2025:
1. Electric vehicles to start paying vehicle excise duty from April 2025 onwards
From 1 April 2025 onwards, all electric vehicles will have to start paying a higher band vehicle excise duty (commonly referred as ‘car tax’) set by the government. The standard rates currently stand at £190/year for cars, £335/year for vans and £25/year for motorcycles and tricycles.
Electric cars registered on or after April 1, 2025 will pay a first-year rate of £10 as opposed to the £0 paid in financial year 2024-25. These cars will also have to pay the Expensive Car Supplement levied on cars with a list price of more than £40,000, which electric vehicles were previously exempt from. The current Expensive Car Supplement charge stands at £410 in 2024/25. Diesel and petrol cars producing Co2 more than 76g/km will start paying double the first-year tax in 2025/26 as compared to 2024/25. Vehicle excise duty (VED) has been increasing in line with inflation since 2010. Changes in VED for the next financial year were announced in the Autumn Budget 2024.
Electric cars registered on or after April 1, 2025 will pay a first-year rate of £10 as opposed to the £0 paid in financial year 2024-25. These cars will also have to pay the Expensive Car Supplement levied on cars with a list price of more than £40,000, which electric vehicles were previously exempt from. The current Expensive Car Supplement charge stands at £410 in 2024/25. Diesel and petrol cars producing Co2 more than 76g/km will start paying double the first-year tax in 2025/26 as compared to 2024/25. Vehicle excise duty (VED) has been increasing in line with inflation since 2010. Changes in VED for the next financial year were announced in the Autumn Budget 2024.
2. Fuel duty freeze to continue in 2025/26 and Fuel Finder will be introduced end of 2025
In the Autumn Budget 2024, the government announced that fuel duty will remain frozen for another year till March 2026 to help with the cost-of-living crisis. Fuel duty has been frozen since January 2011 to prevent its rise with inflation. The basic rate on diesel and petrol has been 52.95 pence per litre (ppl) as per the Office for Budget Responsibility which includes the 5 ppl cut.
The government also announced that they’ll be introducing a new scheme called Fuel Finder (previously called Pumpwatch) by the end of 2025, to help improve road fuel price transparency. Under Fuel Finder, all UK retail petrol-filling stations will be required to share details of any price changes and unavailability of fuel within 30 minutes. This will help drivers get a fair deal for fuel across the UK.
The government also announced that they’ll be introducing a new scheme called Fuel Finder (previously called Pumpwatch) by the end of 2025, to help improve road fuel price transparency. Under Fuel Finder, all UK retail petrol-filling stations will be required to share details of any price changes and unavailability of fuel within 30 minutes. This will help drivers get a fair deal for fuel across the UK.
3. Benefit in Kind (BiK) to increase for all vehicles in 2025/26
Benefit in Kind (BiK) refers to the tax you pay when you buy a car through your company’s salary sacrifice scheme. BiK rates, like vehicle excise duty, are dependent upon your car’s CO2 emissions.
Since 2022, BiK rates have been stable, but this ends in financial year 2025-26. From April 2025 onwards, BiK rates will increase by 1% in each tax bracket, including tax on zero-emission cars. Fully electric vehicles registered after April 6, 2025 will pay 3% BiK as opposed to the current 2%. The BiK rate keeps increasing as the level of CO2 emitted by the car increases, all the way up to 37% levied on cars producing more that 154g/km CO2.
Since 2022, BiK rates have been stable, but this ends in financial year 2025-26. From April 2025 onwards, BiK rates will increase by 1% in each tax bracket, including tax on zero-emission cars. Fully electric vehicles registered after April 6, 2025 will pay 3% BiK as opposed to the current 2%. The BiK rate keeps increasing as the level of CO2 emitted by the car increases, all the way up to 37% levied on cars producing more that 154g/km CO2.
4. All HGVs to require a safety permit by 4th May 2025
To reduce the number of deaths and injuries on London roads, Transport for London (TfL) implemented a Direct Vision Standard (DVS) and safety permit scheme from 28 October 2024 onwards which mandates heavy goods vehicles (HGVs) to have a safety permit before entering most parts of Greater London.
Lorries that applied for and were granted a grace period now have until 23:59 on 4 May 2025 to install the Progressive Safe System and obtain an HGV safety permit. TfL assigns a star rating to vehicles based on the DVS which measures how much of the road and surroundings can the driver see through their cab windows to ensure that the other road users are visible and safe. All lorries over 12 tonnes must have a three-star rating or fit a progressive Safe System in the vehicle to make it safer, and keep driving and operating in Greater London. Failure to meet the new requirements will result in the drivers getting a Penalty Charge Notice (PNC). HGVs are also required to hold a safety permit before entering and using the areas covered by the HGV safety permit scheme. You can apply for the permit for free. Find out which areas of Greater London are covered under this scheme here.
Lorries that applied for and were granted a grace period now have until 23:59 on 4 May 2025 to install the Progressive Safe System and obtain an HGV safety permit. TfL assigns a star rating to vehicles based on the DVS which measures how much of the road and surroundings can the driver see through their cab windows to ensure that the other road users are visible and safe. All lorries over 12 tonnes must have a three-star rating or fit a progressive Safe System in the vehicle to make it safer, and keep driving and operating in Greater London. Failure to meet the new requirements will result in the drivers getting a Penalty Charge Notice (PNC). HGVs are also required to hold a safety permit before entering and using the areas covered by the HGV safety permit scheme. You can apply for the permit for free. Find out which areas of Greater London are covered under this scheme here.
5. Commercial vehicles required to comply with tachograph rules
Tachographs are fitted in certain commercial vehicles with a maximum authorised mass of more than 3.5 tonnes. They’re used to track data like driving time, the car’s speed and mileage. Using a tachograph helps ensure that all drivers follow the rules of the road, as well as ensures driver wellbeing.
According to the Regulation (EU) 2020/1054, a ‘full’ smart tachograph 2 or ‘transitional’ smart tachograph 2 must be retrofitted into in-scope vehicles with: • an analogue or digital tachograph undertaking international journeys, on or after 31 December 2024 onwards • a smart tachograph 1 that are undertaking international journeys, on or after 19 August 2025 onwards This new version of the tachograph will be able to record when the vehicle crosses borders, when the vehicle is being loaded and unloaded, and will feature strengthened anti-tempering mechanisms.
According to the Regulation (EU) 2020/1054, a ‘full’ smart tachograph 2 or ‘transitional’ smart tachograph 2 must be retrofitted into in-scope vehicles with: • an analogue or digital tachograph undertaking international journeys, on or after 31 December 2024 onwards • a smart tachograph 1 that are undertaking international journeys, on or after 19 August 2025 onwards This new version of the tachograph will be able to record when the vehicle crosses borders, when the vehicle is being loaded and unloaded, and will feature strengthened anti-tempering mechanisms.
6. Congestion charge exemption for electric and hydrogen-fuelled vehicles ends on 24 December 2025
Until now, unless you drove a fully-electric vehicle or a hydrogen fuel cell vehicle, anyone driving through London’s congestion charging zone (CCZ) have had to pay a £15 congestion charge. This changes from 25 December, 2025 onwards where all drivers, irrespective of their vehicle will be liable to pay the congestion charge.
Since it’s free to travel in the congestion charge zone at all times from 25th December till 1st January (inclusive) every year, drivers of an electric car or hydrogen fuel cell vehicle will have to start paying congestion charge from 2 January, 2026 onwards. Many businesses have signed an open letter asking Mayor of London Sadiq Khan to exempt electric vans from congestion charge to help ease the cost of businesses investing in environmentally friendly fleets. Learn more about congestion charge.
Since it’s free to travel in the congestion charge zone at all times from 25th December till 1st January (inclusive) every year, drivers of an electric car or hydrogen fuel cell vehicle will have to start paying congestion charge from 2 January, 2026 onwards. Many businesses have signed an open letter asking Mayor of London Sadiq Khan to exempt electric vans from congestion charge to help ease the cost of businesses investing in environmentally friendly fleets. Learn more about congestion charge.
7. All new cars and vans to meet Euro 7 emission standards from 2026
Emission standards help keep the emissions produced by vehicles in check, to help improve the air quality. Euro 6 is the latest emission standard rating introduced on 1 September 2015.
Euro 7 was adopted by the EU in April 2024 to help further reduce pollution emitted by vehicles in Europe, and is set to be implemented from 2026 onwards. The Euro 7 emission standards set out newer and stricter rules for emissions from cars, vans and heavy-duty vehicles. While Euro 7 has kept the same level of exhaust emission limits, it has introduced stricter requirements for solid particles emitted by cars and vans, particle emitted when braking and stricter lifetime requirements for all vehicles in terms of mileage and lifetime.
Euro 7 was adopted by the EU in April 2024 to help further reduce pollution emitted by vehicles in Europe, and is set to be implemented from 2026 onwards. The Euro 7 emission standards set out newer and stricter rules for emissions from cars, vans and heavy-duty vehicles. While Euro 7 has kept the same level of exhaust emission limits, it has introduced stricter requirements for solid particles emitted by cars and vans, particle emitted when braking and stricter lifetime requirements for all vehicles in terms of mileage and lifetime.
8. Self-driving cars could be in the UK by 2026
We could see self-driving cars arrive by 2026 after the Automated Vehicles (AV) Act was passed in May 2024.
The AV Act requires all self-driving cars to undergo robust safety testing. Cars will need to achieve at least the same level of safety and competence as human drivers and meet all safety checks before they can be allowed on the roads. Using this technology, the government hopes to reduce road collisions and fatalities, boost the economy and deliver new jobs, improve the quality of transport in the UK, help deliver essential goods, and increase connectivity. While this technology exists and has been in good use in countries like the US and China, the UK is yet to reap the benefits of this technology.
The AV Act requires all self-driving cars to undergo robust safety testing. Cars will need to achieve at least the same level of safety and competence as human drivers and meet all safety checks before they can be allowed on the roads. Using this technology, the government hopes to reduce road collisions and fatalities, boost the economy and deliver new jobs, improve the quality of transport in the UK, help deliver essential goods, and increase connectivity. While this technology exists and has been in good use in countries like the US and China, the UK is yet to reap the benefits of this technology.
9. Safety cameras trial to end in March 2025
Ten police forces have been working with the National Highway to trial a new automatically technology that uses artificial intelligence (AI) to catch drivers not wearing seatbelts or using their mobile while driving.
The technology trial was first launched in 2021 by the National Highway. For the latest trial, which will be running from Feb 2024 to March 2025, they’ve joined forces with the police to learn more about how the technology could be used. The AI technology is capable of capturing footage of drivers driving dangerously and send it to police. Once caught, drivers can be fined up to £500 for not wearing a seatbelt, and a £1,000 fine and six penalty points for using their mobiles. Through this trial, the National Highway hopes to expand the deployments and integrate data processing with police systems to help make roads safer and eventually roll out the technology nationwide.
The technology trial was first launched in 2021 by the National Highway. For the latest trial, which will be running from Feb 2024 to March 2025, they’ve joined forces with the police to learn more about how the technology could be used. The AI technology is capable of capturing footage of drivers driving dangerously and send it to police. Once caught, drivers can be fined up to £500 for not wearing a seatbelt, and a £1,000 fine and six penalty points for using their mobiles. Through this trial, the National Highway hopes to expand the deployments and integrate data processing with police systems to help make roads safer and eventually roll out the technology nationwide.
10. CPC qualifications could change to help make it easier to qualify
Certificate of Professional Competence (CPC) is a certificate required by all professional drivers that operate HGVs (heavy goods vehicles). From 2025 it may become easier to qualify as a CPC driver and return to professional driving for those who only want drive in the UK.
The government has proposed dividing CPC qualifications into International Driving CPC and National Driving CPC. This will help make it the National CPC course easier with training providers being able to offer longer course if they want and being free to set their own time limits to course completion. You’ll also be able to do 12 hours of e-learning towards your overall 35 hours of training required, from the comfort of your home or workplace. The government has also proposed adding more options to make it easier to return to professional driving, including taking a new 7-hour ‘return to driving’ training module for International Driver CPC, driving professionally again in the UK, and then taking a further 28 hours of National Driver CPC or International Driver CPC training within 12 months of finishing the ‘return to driving’ module to requalify. All these changes are subject to Parliamentary approval.
The government has proposed dividing CPC qualifications into International Driving CPC and National Driving CPC. This will help make it the National CPC course easier with training providers being able to offer longer course if they want and being free to set their own time limits to course completion. You’ll also be able to do 12 hours of e-learning towards your overall 35 hours of training required, from the comfort of your home or workplace. The government has also proposed adding more options to make it easier to return to professional driving, including taking a new 7-hour ‘return to driving’ training module for International Driver CPC, driving professionally again in the UK, and then taking a further 28 hours of National Driver CPC or International Driver CPC training within 12 months of finishing the ‘return to driving’ module to requalify. All these changes are subject to Parliamentary approval.
11. Vehicle more than 5 years old to be inspected in Guernsey
Guernsey might implement a vehicle inspection scheme to ensure the local vehicles can continue driving as normal in Europe post-Brexit.
Under this scheme, vehicles that are more than five years old will be required to go through an inspection once every three years. The standards of the inspection would align broadly with the UK’s, with some adjustment for local factors and local legislation where appropriate, according to Environment and Infrastructure (E&I) Committee. This scheme was initially due to go live in 2022 but was delayed due to the COVID pandemic.
Under this scheme, vehicles that are more than five years old will be required to go through an inspection once every three years. The standards of the inspection would align broadly with the UK’s, with some adjustment for local factors and local legislation where appropriate, according to Environment and Infrastructure (E&I) Committee. This scheme was initially due to go live in 2022 but was delayed due to the COVID pandemic.