Login
My Garage
New hero

How much tax an electric vehicle will pay in 2025

By Jodie Chay Oneill | October 3, 2024

Share

Why not leave a comment?

See all | Add a comment

The UK government has announced changes to tax rates for EVs, which will take effect in April 2025

How much tax an electric vehicle will pay in 2025

As electric vehicles (EVs) become more popular, understanding the tax implications is crucial for owners and potential buyers. The UK government has announced changes to tax rates for EVs, which will take effect in April 2025. Here's what you need to know about how much tax you can expect to pay.

Vehicle Excise Duty (VED) Changes

From April 2025, electric vehicles will no longer be exempt from Vehicle Excise Duty (VED), commonly known as road tax. Previously, EVs enjoyed a zero-rate status, meaning owners didn’t have to pay any road tax. However, this is changing.

Starting in 2025, EVs will fall under the new tax bands. Specifically, all EVs will be required to pay a flat rate of £165 per year. This applies to all fully electric vehicles, regardless of their price or emissions, making it straightforward for drivers to understand their tax obligations.

Benefits and Exemptions

While EVs will now incur a road tax, they still offer various benefits. Electric vehicles are exempt from the congestion charge in London and benefit from lower running costs compared to traditional petrol or diesel cars. Additionally, many businesses are incentivized to switch to electric fleets, thanks to favorable tax conditions.

Conclusion

In summary, starting in 2025, electric vehicle owners will pay a fixed road tax of £165 each year. Although this marks the end of the zero-tax period for EVs, the advantages of owning an electric vehicle remain significant, making them an appealing choice for many drivers.

Related Articles

Japan’s new law on cyclists using phones: Should the UK follow suit?
Could Japan's tough new cycling laws be the key to safer roads in the UK?
1 in 5 young drivers risk illegal driving by skipping MOTs and tyre replacements
With rising car repair costs, many drivers under 44 are delaying essential maintenance—but is saving now worth the risks and bigger bills...
Top car sellers in Europe: who led the market in September 2024?
The European car market saw slight improvement in September 2024, but overall sales remain down, with EVs and petrol cars struggling
Watch out: counterfeit car parts are putting drivers at risk
How fake car parts could be putting you in danger without you even knowing it