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How Much Will Electric Car Tax Be In 2025?

How Much Will Electric Car Tax Be In 2025?

Electric car tax 2025

In the UK, electric car drivers have enjoyed the benefits of paying £0 road tax whilst driving an electric car - but from the 1st of April 2025, everything will change.

Firstly: what is 'road tax' in the UK?

Also referred to as ‘Vehicle Tax Duty (VED)’, road tax is a yearly payment charged on all vehicles being driven or parked on public roads. The government uses this income to contribute to the maintenance and growth of the UK road infrastructure - be this from improving traffic flow to implementing more EV charge points for the public. Most drivers will be familiar with this, as it needs to be renewed every 6-12 months.

Secondly: why is the road tax for electric cars changing?

The decision was made in 2023 by Jeremy Hunt, the Chancellor of the Exchequer, who said:

Because the Office of 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.

Thirdly: how much will electric car tax be?

Brand-new zero-emission cars (mainly EVs) registered from 1st April 2025 will have to pay an electric car tax of £10 to cover them for their first year on the road. Currently, all cars that produce less than 50 g/km are exempt from this payment which drivers have enjoyed for many years. However, from the second time they’re taxed (or the cars 1st birthday), EV tax rates will equalise those charged for every other car registered since April 2017. Currently, the rate is £190 per year, though that may go up again in the coming years.

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