Warning issued to EV drivers or 'anyone considering' an electric car
Electric vehicle drivers or anyone "considering" an EV have been warned over new car tax changes being pushed through by the Labour Party government within weeks. A new VED shake up is coming to the country from April, it has been warned.
EVA England warned: "From April 2025, electric vehicles (EVs) will no longer be exempt from Vehicle Excise Duty (VED), but will benefit from cheaper preferential first-year rates compared to their petrol and diesel counterparts.
"While this marks a significant shift for EV owners, it’s important to understand what the VED changes mean in practice and how they’ll affect both current and future EV drivers. For New EVs Registered on or after 1 April 2025, the first-year rate for EVs will increase to the lowest band of £10 until 2029-30 and after that first year, EVs will be subject to the standard annual rate of £195 (current rate).
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If you currently own an EV from April 2025, you’ll start paying the standard rate of VED (£195/year). And in a warning to those "considering" an EV, the group warned: "The upfront incentives to buy an EV are shifting, but first-year rates, at £10, remain far more preferential for EVs.
"From 2025-26, the gap between rates for EVs and combustion engine cars will progressively widen." It said: "While the introduction of VED changes the cost landscape slightly for EVs, they remain a key driver of cleaner transport and cheaper to run over their lifetime.
"The introduction of VED on EVs is seen as necessary by the Government considering their growing number on UK roads. But despite the increased cost implications, the overall tax burden remains much higher for more polluting cars. A similar approach was taken on Company Car Tax, which is similarly increasing for EVs but with much more preferential rates than ICE vehicles. As always, EVA England is keeping an eye on all the policy changes that affect EV drivers and advocating for measures to support current and future EV owners through this transition."