UK drivers could enjoy £0 car tax with new 'lucky bands' from next year

Drivers residing in ‘lucky’ car tax bands may no longer need to pay from next April.

Despite the ‘doom and gloom’ following the , motorists in certain bands will receive a financial boost from next year, because they will no longer needing to pay car tax. The new car tax bands mean that some Brits could see their car tax costs slashed to £0.

Although more drivers will be expected to fork out for road tax from April 2025, others will see a significant reduction in how much they’re paying. The new setup for car tax aims to make how road tax is paid more ‘fair’ for drivers, reports .

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Tax expert Andy Wood, from Tax Natives, explained: "With the upcoming introduction of Vehicle Excise Duty (VED) for electric and low-emission vehicles in April 2025, the Government is aiming to ensure the system of vehicle taxation is 'fair' for all motorists, as highlighted by former Chancellor in the 2022 Autumn Statement."

He also warned: "While the change is a significant shift, many drivers may not be prepared for the extra cost, and it's essential to check your vehicle's tax status ahead of time to avoid surprises." The heads-up comes ahead of the unveiling of new VED bands next year by the government. Chancellor is set to present her Autumn and forthcoming fiscal plans in a fortnight, on October 30.

Exemptions will continue for classic and historic motors and vans registered before January 8 1984, safeguarding these vintage treasures for future enjoyment, and agricultural machines. Disabled motorists who use certain types of vehicles can also seek exemption from road tax, provided they have the necessary paperwork to back up their claim.

Andy stated: "Even vehicles that are currently exempt will still require owners to make sure they fall under the correct category. It's particularly vital for owners of 'limited use' vehicles - those used in agriculture, horticulture, or forestry with restricted road travel distances - to ensure they meet the criteria outlined in the V355/1 DVLA document. Failing to adhere to these requirements could lead to losing their tax-exempt status."