In the financial year 2021/22, British motorists forked out a staggering £33 billion in fuel duty and vehicle excise duty, also known as road tax, a Centre for Policy Studies report has revealed. For those keen to cut down on their motoring costs, avoiding the road tax expense could be an excellent starting point. Road tax can reach up to £2,745 annually, depending on a vehicle's CO2 emissions and fuel type.
Specialists are pointing towards tax-exempt vehicles as the solution, although they warn these won't be available indefinitely. Vehicles registered between May 2001 and April 2017 fall into bands A to M based on their CO2 emissions. Those in band A, with CO2 emissions under 100g/km, don't have to pay road tax.
Read more: Teenager murdered as he ran back home after going for dog walk Read more: The Essex pubs where you can buy poppy-themed pint glasses from the Royal British Legion However, this is set to change; from 1 April 2025, band A will no longer exist, meaning all cars currently in that category will shift to band B and become subject to road tax. Additionally, electric vehicles (EVs), which are currently exempt from road tax due to zero exhaust emissions, will face charges from 1 April 2025. The only current exception applies to cars valued over £40,000, which incur an extra luxury car fee of £410 for the first five years.
This exemption was scrapped by then Chancellor Jeremy Hunt in 2022, who stated: "To make our motoring tax system fairer, I've decided that .