From April 2025, electric vehicle owners in the UK will no longer be exempt from paying vehicle excise duty (VED). The changes, announced in the autumn 2024 Budget, will see EVs taxed in the same way as petrol and diesel vehicles.
Thousands of electric car drivers will face higher bills in the new year thanks to big changes in road tax es. Registered owners of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles.
The changes were announced following the autumn 2024 Budget, which also pledged an increase on national minimum wage, changes in employers national insurance contributions, and alterations to capital gains tax and inheritance tax. From April 2025, the vehicle excise duty (VED) exemption for electric vehicles will end, which means their tax liabilities will be in-line with those of petrol and diesel vehicles. EVs are currently listed on band A under the existing VED, meaning their drivers do not have to pay road tax - but this band is set to be scrapped. Key changes to car tax Other vehicles such as zero-emission vans and electric motorcycles will also lose their exemptions. Most electric vans will move to the standard annual rate for light goods vehicles, while electric motorcycles and tricycles will move to the annual rate for the smallest engine size. This means vans will pay up to £290 per year, while motorcycles will be taxed at £22 annually, depending on their size and classification. What can drivers do? Electric vehicle drivers have limited time to act before these changes are enforced. Some options people may want to consider include: According to Auto Trader, the second-hand car marketplace, more than 1m EVs have joined Britain’s roads since 2010. As of October 2024, there were 71,459 public charge points in total across the UK, and 13,935 rapid chargers that can charge car to around 80% in just 20-40 minutes. Electric vehicles are sold at higher prices with the aim of saving money on running costs in the long ter
ELECTRIC VEHICLES ROAD TAX BUDGET CHANGES VEHICLE EXCIASE DUTY ENVIRONMENTAL POLICY
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