Anyone with a new electric vehicle is facing a big hit in the pocket paying tax for the first time - with anything over £40,000 incurring a huge penalty
The DVLA has issued a new £190 tax warning to millions of car drivers - with a warning that a high proportion will have to pay the full amount of £600. In a post on X today, the DVLA gave an alert that all electric and low emission vehicles will have to pay new charges from April 2025.
Until now people who bought these kinds of vehicles came under band A under the existing VED system which is currently £0 - meaning they didn’t pay tax, a system designed to encourage people to but the more environmentally friendly cars. However, now in a post today on X, the DVLA said: “Vehicle tax is changing for electric and low emission vehicles from 1 April 2025.”
However, there is also a £410 surcharge on cars with a list price of £40,000 or more, which brings the annual tax rate to £600. This means the total road tax for any car costing over £40,000 is £600, paid every year until the car is six years old. Rapid inflation on car prices since the introduction of the Expensive Car Supplement means that this tax is now applied to many models not seen as being particularly luxurious, including higher-spec versions of mainstream models like the Vauxhall Astra, Ford Kuga and Volkswagen Golf. In 2023, the average price of a new electric vehicle in the UK was £40,000, compared to £30,000 for a new internal combustion engine vehicle.
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