Electric Vehicles To Pay Road Tax From April 2025

18th November 2022

Electric cars will no longer be exempt from vehicle excise duty from April 2025.

Announcing the change as part of his Autumn Statement, Jeremy Hunt said the move was designed to make the motoring tax system "fairer".

The RAC motoring group said it did not expect the change to dampen demand for electric vehicles (EVs).

But others, including the AA, warned the move would reduce the incentive to switch to EVs.

Mr Hunt said: "Because the OBR (Office for Budget Responsibility) forecasts half of all new vehicles will be electric by 2025, to make our motoring tax system fairer I've decided that from then, electric vehicles will no longer be exempt from vehicle excise duty."

Vehicle Excise Duty (VED) is a tax levied on vehicles on UK roads. At present, EVs are exempt.

There are different rates depending on the vehicle.

Anyone buying a new car - electric or otherwise - priced at more than £40,000 will face having to pay £165 in tax plus a £355 expensive car supplement every year from the second to sixth year of registration.