Green Karma

The free road tax was a significant reason why the public switched to EVs for car-buying.

Starting in April 2025, EVs won’t be exempt anymore.

Electric vehicles are exempt from road tax (Vehicle Excise Duty).

From April 1, 2025, EV owners will need to pay road tax, just like petrol and diesel vehicle owners.

EVs registered on or after April 1, 2025, will pay £10 in the first year, a rate typically applied to low-emission vehicles.

However, from the second year onwards, the standard road tax rate will apply to EVs, currently set at £190 per year (though this may change before 2025).

Starting in their second year of registration, EVs with a list price over £40,000 will be subject to an additional £410 annual charge for five years.

This charge was previously only applied to petrol, diesel, and hybrid cars.

EVs registered between April 1, 2017, and March 31, 2025, must also pay the standard VED rate of £190 from April 1, 2025.

‘Now I’ll save the planet and pay for the potholes.’

The UK government introduced this change to ensure all drivers contribute to road maintenance, creating a fairer tax system.

Running an EV will become more expensive, particularly for luxury models.

That said, due to lower fuel costs, EVs are still expected to be cheaper overall than petrol or diesel vehicles.

Buyers should consider purchasing EVs that cost less than £40,000 brand new to avoid the luxury tax.

However, buyers should be cautious with optional extras that could push the price over £40,000.

The message here is to check your specific car’s tax band when purchasing an EV, as tax rates and thresholds may change before 2025.

‘The government has finally realised EVs aren’t just powered by good vibes… now they want their cut of your green karma’