Electric vehicle (EV) owners in the UK are set to face new road tax charges starting from April 2025, marking a significant change in the taxation system. Over a million motorists have been informed that they will no longer be exempt from vehicle excise duty, as the government aims to boost tax revenue with the increasing popularity of electric cars on the roads.
The impending shift signifies the end of a period where EV owners enjoyed the perk of not having to pay road tax. Most electric car drivers are expected to pay the standard rate of £190 annually, with an added supplement charge of £410 for owners of higher-end models, according to a report by Birmingham Live. The decision to revise the rules is part of a wider effort to align electric vehicle drivers with other motorists in terms of tax obligations.
The RAC highlighted that from April 1, 2025, EV drivers will need to start paying for road tax for the first time, impacting hundreds of thousands of EV owners and their running costs. Additionally, there will be an expensive car tax supplement for electric vehicles with a list price exceeding £40,000. These changes will also apply retroactively, meaning drivers who previously benefited from the tax exemption will now be required to pay vehicle excise duty.
New zero-emission cars registered from April 1, 2025, will be subject to the lowest first-year VED rate, currently set at £10 annually for vehicles with CO2 emissions between 1 to 50g/km. Subsequently, they will transition to the standard rate of £190 per year from the second year onwards. The expensive car supplement exemption for electric vehicles is expected to end in 2025, with new zero-emission cars being liable for the supplement, which currently stands at £410 per year for vehicles priced over £40,000.
This means that EV drivers with high-end models will potentially face an annual road tax bill of up to £600. The upcoming changes in road tax regulations are poised to impact electric vehicle owners significantly, with financial implications and adjustments to factor into their ownership experience.
As the deadline approaches, EV drivers are advised to prepare for the new tax charges and consider the potential impact on their motoring costs. The shift towards including electric cars in the road tax system reflects the evolving landscape of vehicle taxation as the UK transitions towards a more sustainable and environmentally friendly transport sector.