Search results
People also ask
Do electric cars pay road tax?
Who will be affected by the electric car tax measure?
Will the electric car tax change affect EV demand?
What tax band do electric cars go to?
When will electric vehicles be exempt from vehicle excise duty?
Will electric vehicles be charged vehicle excise duty from April 2025?
Apr 9, 2024 · From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles.
Oct 21, 2024 · However, from 1 April 2025, drivers of electric cars in the UK will need to pay for road tax for the first time. The new 2025 VED rules will impact hundreds of thousands of EV owners and their electric vehicle running costs.
- Who Is Likely to Be Affected
- General Description of The Measure
- Policy Objective
- Detailed Proposal
- Summary of Impacts
- Monitoring and Evaluation
- Further Advice
- Declaration
Current and future owners of electric cars, vans and motorcycles. This measure will affect both private owners and organisations who own electric vehicles (EVs).
This measure will equalise the Vehicle Excise Duty (VED) treatment of all zero emission and internal combustion engine (ICE) vehicles from April 2025. This change will apply to both new and existing alternatively fuelled vehicles (AFVs). Zero emission cars first registered on or after 1 April 2017 will be liable to pay the lowest first year rate of...
To ensure all drivers begin to pay a fairer tax contribution, this meaure will bring electric vehicles, which do not currently pay VED, and AFVsand hybrids, which pay a discounted rate, into the motoring tax system, in the same way as petrol and diesel vehicles. The government will continue to use the tax system to support the transition to electri...
Operative date
The changes are expected to come into force from 1 April 2025.
Current law
Paragraph 20G of Schedule 2 to the Vehicle Excise & Registration Act (VERA) 1994 exempts electric vehicles from the requirement to pay Vehicle Excise Duty.
Proposed revisions
Schedule 2 of VERA 1994will be amended so that the electrically propelled vehicle exemption no longer applies to cars, vans and motorcycles. The exemption for cars with low CO2 emissions will also be omitted. Schedule 1 will be amended so that electric cars, vans and motorcycles are liable to pay the same rates as petrol and diesel vehicles. Schedule 1 will also be amended so that new electric cars will be eligible to pay the higher rate of duty, commonly known as the expensive car supplement...
Exchequer impact
These figures are set out in table 5.1 of Autumn Statement 2022 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Autumn Statement 2022.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure will impact on individuals who own an electric car, van or motorcycle. These individuals will now need to pay VED on their vehicles. Changes will come into effect from 1 April 2025. For existing vehicles, changes to VEDrates will apply from the vehicle’s annual renewal date for the 2025-26 financial year. This measure is expected overall to have no impact on business’ and individual’s experience of dealing with HMRC as the introduction of VEDon these vehicles does not change any...
The measure will be kept under review by DVLA, HMRC and HM Treasury through communication with key stakeholders.
If you have any questions about this change, please contact the Energy and Transport Taxes Team at the following email address: ETTAnswers@HMTreasury.gov.uk
James Cartlidge MP, Exchequer Secretary to the Treasury, has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.
Apr 11, 2024 · From April 1, 2025, Band A is being scrapped and all EVs will be liable for tax. At the same time, the government is scrapping the £10-per-year discount for hybrid vehicles and removing the Expensive Car Supplement exemption from EVs. It is also changing the rules on electric vans and motorcycles.
3 days ago · Zero-emission vehicles: Tax incentives continue for pure electric vehicles, with the percentage rate increasing gradually by 2% each year up to a cap of 9% in 2029-30. Hybrid vehicles: Hybrid company cars (emitting 1-50 g of CO2/km) will see tax rates increase more steeply. By 2029-30, hybrids will reach an 18% tax rate.
Nov 17, 2022 · Benefit-in-kind tax on electric company cars will increase to 3% in April 2025, rising 1% each consecutive year, to 5% in 2027/28.
Oct 11, 2024 · Do I have to pay road tax on an electric car? Electric vehicles will become liable for vehicle excise duty (VED) on 1 April 2025. The change was announced by Chancellor Jeremy Hunt in the 2023 Autumn Statement, giving motorists two years’ notice to factor it into their household budgets.
