Drivers of eight popular cars face £190 car tax rise in VED shake-up

Drivers of eight popular cars face £190 car tax rise in VED shake-up
-Credit: (Image: Reach Publishing Services Limited)


Drivers of some of the most popular cars in the country face a £190 tax within MONTHS. The Labour Party government and Department for Transport are set to introduce a £190 tax for motorists and road users who use electric vehicles (EVs).

From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles, the Department for Transport (DfT) has confirmed.

This new measure effectively removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.

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Electric and low emission cars registered on or after 1 April 2025 will need to pay the lowest first year rate of vehicle tax (which applies to vehicles with CO2 emissions 1 to 50g/km). From the second tax payment onwards, these vehicles will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.

The top best-selling electric cars in the UK currently are Tesla Model Y, MG4 EV and Audi Q4 e-tron as well as the Polestar 2 and Volkswagen ID.3. The list is completed by the Kia Niro Electric, BMW i4 and SKODA Enyaq iV.

Electric and low emission cars registered between 1 April 2017 and 31 March 2025 will pay the standard rate. This is £190 for 2024 but is subject to change for 2025. Electric and low emission cars registered between 1 March 2001 and 31 March 2017 will move to the first band that has a VED value. This is £20 for 2024 but is subject to change for 2025.

Most electric vans will move to the standard annual rate for light goods vehicles. Electric motorcycles and tricycles will move to the annual rate for the smallest engine size.