The DVLA announces a tax increase for electric vehicle (EV) owners starting April 1st. EVs will no longer be exempt from Vehicle Excise Duty (VED), with owners paying varying rates based on registration dates. New EVs registered after April 1st, 2025, will face a lower initial rate before transitioning to the standard rate. Luxury EVs exceeding £40,000 will also be subject to the Expensive Car Supplement (ECS). The Labour government plans to review the tax threshold for zero-emission vehicles in the future. Despite the tax changes, EV owners benefit from lower running costs compared to petrol or diesel vehicles.
Owners of electric vehicles face a three-figure tax hike this year The DVLA has issued a reminder that taxes on certain types of cars are set to be hiked in two months’ time. On April 1, drivers of electric vehicles will have to pay vehicle tax in the same way as those who own petrol and diesel vehicles. This means EVs will no longer be exempt from Vehicle Excise Duty . The amount EV drivers pay will initially vary depending on when their car was purchased.
As well as ‘preferential’ first-year tax rates, EV running costs can be as low as 6p per mile, compared to 16-17p per mile for the average petrol or diesel car, the EVA said.
ELECTRIC VEHICLES TAX HIKE VEHICLE EXCISE DUTY ROAD TRAFFIC LAWS GOVERNMENT POLICY
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