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Topics: Cars, Driving, Money, UK News, Jeremy Hunt
Brenna Cooper
Topics: Cars, Driving, Money, UK News, Jeremy Hunt
A change in UK vehicle tax rates means that electric car owners up and down the country will be expected to pay more to drive one from tomorrow.
Following an update to Vehicle Excise Duty (VED), which is an annual tax levied on motors in use across the UK, electric, zero, and low-emission vehicles will no longer be exempt from vehicle tax. Which means you'll have to start coughing up extra cash like the rest of the nation's petrol or diesel drivers.
Here is a rundown on the changes set to come into effect from tomorrow (1 April), according to the government website.
From Tuesday, the Treasury will be removing all electric vehicles from car tax exemption. Rates typically depend on the age of your car and the amount of CO2 emissions it generates.
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The change in policy was originally announced by the previous Conservative government back in 2022, with former Chancellor Jeremy Hunt stating that he believed the move would 'make our motoring tax system fairer'.
New electric vehicles registered after the switch over will be required to pay the 'lowest' first year rate of vehicle tax, which is set at £10.
After the first year you'll move onto the standard car tax rate.
All vehicles in this category will pay the standard rate of £195.
Electric, low, and no-emission vehicles which fall under this category will be expected to pay the first band which has a VED value. This is £20.
Removing the exemption from VED isn't the only change coming for EV owners either, with the luxury car tax also being added to owners of electric, low and no emissions vehicles which have a value of over £40,000.
The change will come into effect from 1 April and will see luxury EV owners expected to pay an extra £425 from the second to the sixth year after their car is registered (via Metro).
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Electric vehicle owners shouldn't feel too hard done by though as changes to VED on petrol and diesel vehicles are also coming tomorrow — with owners of cars which emit more than 255g/km of CO2 expected to pay £5,490 during their first year on the road.