The "Free Tax" Era is Ending
For years, the biggest perk of owning an Electric Vehicle (EV) in the UK was the zero-rated Vehicle Excise Duty (VED), commonly known as road tax.
However, Chancellor Jeremy Hunt announced that from 1 April 2025, electric cars, vans, and motorcycles will begin paying VED in the same way as petrol and diesel vehicles.
How much will you pay?
New EVs (Registered on or after 1 April 2025)
You will pay the lowest first-year rate (currently £10) for 12 months. After that, you will move to the standard rate (currently £180 per year).
Existing EVs (Registered between 2017 and 2025)
If you already own an EV, you won't escape the charge. You will move straight to the standard annual rate (currently £180) from your next tax renewal after April 2025.
The "Expensive Car Supplement"
Currently, cars costing over £40,000 pay an extra surcharge (the "Expensive Car Supplement") for five years. EVs were previously exempt from this.
From 2025, this exemption ends. If you buy a new premium EV (like a Tesla Model Y or Audi Q4 e-tron) that costs over £40,000, you will be liable for the expensive car tax, which could push your annual bill over £600.