New car tax rules will 'level playing field' for all petrol, diesel and electric drivers

Motorists have been alerted by experts concerning changes in car tax that will impact all vehicles starting from next year. With the UK poised to overhaul its tax system, vehicle users are urged to stay abreast of alterations to Vehicle Excise Duty (VED).

Commencing on April 1, 2025, owners of electric vehicles (EVs), who are currently exempt from VED, will be required to begin paying it, albeit at a significantly lower rate compared to petrol and diesel vehicle drivers. Charges for low emission or zero-emission cars are predicted to stand at £10 for the first year, but this figure is expected to skyrocket to £190 during the car's second year of registration.

Darren Miller from told GB News that with EVs set to lose their tax exemption from April 1, 2025, any new low- or zero-emission car registered before the VED deadline will initially face the lowest annual charge of £10. According to Miller, these changes are designed to ensure "fairer" taxes for every type of vehicle, encourage sustainability, and make certain everybody "pays their fair share."

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He also stated that ending the road tax exemption for electric vehicles indicates the Government's dedication towards establishing a "level playing field" for all motorists. The UK employs a "dual-rate structure" for its road tax system, which is initially based on vehicle cost, Miller further elaborated, explaining that this strategy aligns motoring tax with environmental impact and ownership costs.

Miller, focusing on electric vehicles, stated that the emphasis is now on the cost of the vehicle rather than its emissions, introducing new factors for EV owners within the VED framework. He warned EV owners to prepare as these changes will take effect in less than a year.

Miller emphasised that understanding the new road tax regulations is "key" to making informed decisions and an "essential" part of financial planning.

EV drivers who first registered their vehicle between April 1, 2017, and March 31, 2025, will be required to pay the current standard VED rate of £190. From next year, electric vehicles will also start paying the Expensive Car Supplement, with their exemption set to end.

This scheme, which was implemented in 2022, meant that EVs priced over £40,000 would not be charged the excess fee if registered before April 1, 2025.

However, from April 1, 2025, drivers of low and zero-emission cars will also have to pay this surcharge, designed to generate revenue from the most expensive vehicles on the road. Greg Wilson, founder and CEO of, added: "These road tax charges will be affecting all current and future electric vehicle drivers. It's important for anyone planning to buy a zero-emissions car to know what they will be expected to pay in less than a year's time and factor these changes into their decision-making process."