From April 2025, a significant overhaul of road tax is set to hit millions of motorists, with many facing charges for the first time. Popular vehicle owners are being urged to gear up for the incoming changes to avoid being blindsided by the new fees.
Electric vehicle (EV) owners, who have enjoyed exemption from car tax, will be required to pay the standard £190 rate that petrol and diesel car drivers currently pay. This move marks the end of a tax-free era for EV drivers as the Government seeks to tap into the growing electric car market for tax revenue, reports.
With an increasing number of EVs hitting the roads, the potential loss in tax income has prompted ministers to level the playing field, branding the change as a step towards a "fair" tax system for all drivers. The impending shift will affect all electric vehicles, including top-selling models:
- Volkswagen ID.3
- Kia Niro Electric
- BMW i4
- Volkswagen ID.4
- SKODA Enyaq iV
- Tesla Model Y
- MG4 EV
- Audi Q4 e-tron
- Tesla Model 3
- Polestar 2
The 2025 EV road tax changes are as follows:
- New zero-emission cars registered on or after 1 April 2025 will be liable to pay the lowest first-year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) currently £10 a year.
- From the second year of registration onwards, they will move to the standard rate, currently £190 a year
- Zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate
- The Expensive Car Supplement exemption for electric vehicles is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable for the Expensive Car Supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for five years and is currently £410 a year. This means EV drivers with an 'expensive car' will pay up to £600 a year for road tax
- Zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year
The Government has clarified: "From April 1, 2025, drivers of electric and low-emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of internal combustion engine (ICE) vehicles do. This change will apply to both new and existing vehicles and will ensure all drivers begin to pay a fairer tax contribution."
"Electric and low-emission cars registered between April 1, 2017 and March 31, 2025: You will pay the standard rate. This is £190 for 2024 but is subject to change for 2025."
The RAC has explained: "Road tax, also known as VED or car tax, is an annual payment imposed on motor vehicles that are used or parked on public roads in the UK. It is a form of taxation used by governments to generate revenue and contribute to the costs associated with maintaining and improving road infrastructure.
"Road tax is calculated based on emissions levels, and those with higher levels will pay more each year. This is because they contribute more to pollution and environmental impact. However, from 2025, zero emission vehicles and electric cars will have to pay road tax VED for the first time. "
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