New Vehicle Excise Duty changes will affect electric vehicle owners starting April 1, 2025. Many drivers may be unaware of the upcoming tax implications.
Teesside: Experts are warning drivers about big changes in car tax. Starting April 1, 2025, new Vehicle Excise Duty (VED) rules will kick in. This affects over a million electric vehicle (EV) owners.
For the first time, EV owners will pay standard VED rates. They’ll also face a first-year charge. This ends the previous exemptions for electric vehicles. The Electric Vehicle Authority (EVA) in England stresses the need to understand these changes.
Many EV owners might not know about this shift. From April 2025, EVs will no longer be exempt from VED. However, they will have lower first-year rates compared to petrol and diesel cars.
Currently, there are over a million EV owners in the UK. Cars made since 2017 will have a standard VED cost of £195. This is the same as petrol and diesel vehicles.
But there’s good news! EV owners will only pay £10 for the first-year tax. However, those with EVs worth over £40,000 will face an extra fee called the Expensive Car Supplement (ECS).
Hybrid vehicle owners aren’t in a better spot either. They’ll see higher annual VED fees, losing the small £10 discount they had.
This policy change follows the Conservatives’ decision to tax electric vehicles. Labour has continued this approach since taking office. Chancellor Rachel Reeves announced the new scheme in her Autumn Budget statement.
HM Revenue and Customs made it clear: starting April 1, 2025, all electric, zero, or low-emission vehicles will pay tax like petrol and diesel cars. This applies to both new and existing vehicles.
