Car tax changes will 'level the playing field' and impact all petrol, diesel and electric vehicles next year

Car tax changes will 'level the playing field' and impact all petrol, diesel and electric vehicles next year

WATCH: Major car tax changes to affect all drivers

Hemma Visavadia

By Hemma Visavadia

Published: 25/05/2024

- 08:00

Changes for electric cars will come into effect from April 1, 2025

Experts have warned motorists about car tax changes which will affect the way all vehicles are charged from next year.

As the UK updates its tax system, car users have been urged to be aware of changes to the system of Vehicle Excise Duty.

From April 1, 2025, EV owners who are currently exempt will have to start paying VED tax, although it will still be at a much lower rate than diesel and petrol owners.

The charges for low or zero-emission cars are expected to be £10 for the first year, but will sharply increase to £190 in the second year of registration.

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A clamped car which hasn't been taxed

EVs will pay £10 in the first year of paying VED


Darren Miller, from, told GB News that with electric vehicles losing their tax exemption from April 1, 2025, any new low- or zero-emission cars registered on the VED deadline will initially be charged the lowest rate of £10 per year.

This change aims to make taxes “fairer” for all types of vehicles, promotes sustainability and ensures that everyone “pays their fair share,” Miller explained.

He said the decision to end the exemption of electric vehicles from road tax highlights the Government's commitment to creating a “level playing field” for all motorists.

The UK's road tax system uses a “dual-rate structure”, initially based on the cost of a vehicle, Miller added.

This approach ensures that the motoring tax aligns with environmental impact and ownership costs.

For electric vehicles, Miller said the focus is on vehicle price rather than emissions, introducing new considerations for EV owners within the VED framework.

With less than a year before these changes take effect, EV owners need to prepare, Miller warned.

He said that understanding the new road tax regulations is “key” to making informed decisions and an “essential” part of financial planning.

EV drivers who have first registered their vehicle between April 1, 2017, and March 31, 2025, will be liable to pay the current standard VED rate of £190.

Electric vehicles will also need to start paying the Expensive Car Supplement from next year, with their exemption set to end.

The scheme, which came into effect in 2022, meant that EVs with a price higher than £40,000 would not be charged the excess fee if registered before April 1, 2025.

From April 1, 2025, drivers of low and zero-emission cars must also pay the surcharge, designed to raise revenues for the most expensive vehicles on the road.


Car tax reminder

Electric cars will have to pay VED from April 1 2025


Greg Wilson, founder and CEO of added: “These road tax charges will be affecting all current and future electric vehicle drivers.

“It’s important for anyone planning to buy a zero-emissions car to know what they will be expected to pay in less than a year’s time and factor these changes into their decision-making process.”

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