The automotive industry is set to undergo a significant transformation in the coming years due to a series of regulatory changes aimed at lowering emissions and enhancing safety for all road users.
These changes, which include updates to vehicle tax and stricter emissions standards, will affect manufacturers, businesses, and drivers alike. The timeline below outlines the key updates between 2025 and 2030.
|
Date |
Summary |
|
1 January 2025 |
Second year of ZEV mandate started, the share of ZEVs must account for 28% of total sales in 2025. |
|
1 January 2025* |
Euro 6e-bis pollutant limits introduced for new vehicle types. These changes will be reflected in UK model ranges and apply to all registrations 12 months later. |
|
31 March 2025 |
The following Electric Vehicle Charge Point Grants will close
|
|
1 April 2025 |
Vehicle Excise Duty changes will affect all cars registered since April 2017. VED First Year Rates for new cars registered on or after 1 April 2025:
From the second year of registration onwards, zero-emission cars will move to the standard annual rate of £195 a year. Electric cars registered between 1 April 2017, and 31 March 2025, will be subject to the standard annual rate of £195, beginning with their next tax renewal after April 2025. Electric van VED will move to the standard annual rate for light goods vehicles (TC39), currently set at £335. |
|
1 April 2025 |
Expensive Car Supplement will now also apply to EVs. Any car that costs more than £40,000 when purchased new incurs an additional annual fee of £410 for five years, starting from the first Vehicle Excise Duty (VED) payment. |
|
1 April 2025 |
Double-cab pickups with a payload of one tonne or more, will be treated as cars (instead of LCVs) for the purposes of corporation tax. This will effectively reduce capital allowances for purchased vehicles from 100% (under the Annual Investment Allowance) to 6%. |
|
6 April 2025 |
Company car tax rates, otherwise known as Benefit-in-Kind, will increase by 1% point for all vehicles. Rates for zero emission vehicles are set at 3% for the 2025/2026 Tax Year. For a complete breakdown of BiK rates by year, refer to our BiK rate table. |
|
6 April 2025 |
Double-cab pickups registered after this date will be classified as cars, they will be subject to Vehicle Excise Duty and the Expensive Car Supplement. Employees who use the DCPU for are used for personal journeys, will incur Company Car Tax, otherwise known as Benefit-in-Kind. |
|
6 April 2025 |
Benefit charges will increase in line with Consumer Price Index (CPI) inflation. New rates are £4,020 for vans, £769 for van fuel, £28,200 for car fuel. HMRC does not classify electricity as a fuel, meaning charging electric cars and vans will not incur any benefit-in-kind (BiK) payments. |
|
25 December 2025 |
The London Congestion Charge Cleaner Vehicle Discount will be discontinued. Electric vehicles will now be charged to enter the zone. |
|
1 January 2026* |
Euro NCAP safety scores will be updated. The new scoring system will focus on better detection of drowsiness, alcohol and drug use and whether controls such as touchscreens are designed to avoid distraction. |
|
22 March 2026 |
Fuel duty will cease to be frozen. The 5p per litre cut will be removed. |
|
31 March 2026 |
100% first-year allowances will end for zero-emission cars and EV charge points. |
|
6 April 2026 |
Benefit reporting through payroll will become mandatory. This will replace annual P11d reporting forms for company car and salary sacrifice vehicles. |
|
7 July 2026* |
General Safety Regulation 2 in force for all new vehicle types, requiring Advanced Driver Distraction Warning systems - which track drivers' eye gaze and/or head movements. |
|
1 November 2026* |
Euro 7 emissions limits comes into force for type approvals, including particulates from EV brakes and durability requirements for high-voltage batteries. The rules affect all new cars and vans 12 months later. |
|
1 January 2027* |
Import tariffs of 10% will be applied to EVs entering the EU or UK that do not meet new rules of origin requirements:
must come from within the EU or UK. |
|
6 April 2028 |
Company car tax rates (BIK) for Zero emission vehicles, will increase to 7% for the 2028/2029 tax year.
For a complete breakdown of BiK rates by year, refer to our BiK rate table. |
|
1 January 2030 |
The sale of new petrol and diesel car sales will end, (excluding hybrids) |
|
1 January 2030 |
The ZEV mandate requires the sale of 80% of new cars and 70% of new vans to be zero-emission. |
|
1 January 2035* |
Only zero-emission vehicles will be available from this point. |