Vehicle Tax for Electric and Low-Emission Vehicles from April 2025
General Overview
Starting 1 April 2025, drivers of electric and low-emission cars, vans, and motorcycles will be required to pay vehicle tax (VED) in the same manner as drivers of petrol and diesel vehicles. This change applies to both new and existing vehicles.
This new measure eliminates Band A under the current VED system, which is currently exempt from tax (£0). Vehicles previously in Band A will be shifted to the first tax band where a rate is payable.
Additionally, the Expensive Car Supplement exemption for electric vehicles will end in 2025. This affects new zero-emission cars registered on or after 1 April 2025, which will be liable for the expensive car supplement if applicable. Currently, this applies to vehicles with a list price of £40,000 or more.
No Immediate Action Required
At this stage, customers do not need to take any action. When it is time to tax the vehicle, they will be contacted automatically with information on the new rate and payment options—online, by phone, or at a post office.
The Driver and Vehicle Licensing Agency (DVLA) will send letters directly to registered electric vehicle keepers about these changes, so it’s important for customers to stay informed.
What Does This Mean for you?
Electric Vehicles Registered On or After 1 April 2025:
- Customers will need to pay the lowest first-year rate of vehicle tax (currently applied to vehicles with CO2 emissions of 1 to 50g/km).
- From the second year onwards, these vehicles will be subject to the standard rate, which is £190 for 2024 but is subject to change for 2025.
Electric Vehicles Registered Between 1 April 2017 and 31 March 2025:
- Customers will need to pay the standard rate of vehicle tax, currently £190 for 2024, but this may change for 2025.
Electric Vehicles Registered Between 1 March 2001 and 31 March 2017:
- Customers will move to the first band with a payable VED rate, which is currently £20 for 2024, but this is also subject to change for 2025.
