Electric vehicle users have been warned that starting from April next year, they will incur an additional tax which was previously exempt for their vehicles.
RAC highlighted the impact of the new 2025 Vehicle Excise Duty rules, stating that thousands of EV owners would feel significant changes in their annual motoring costs. Electric cars with zero emissions registered on or after April 1, 2025, will be subject to a minimum first-year VED rate, currently set at £10 per year.
From their second year of registration, such vehicles will move to a standard VED fee of £190 annually, BirminghamLive reports. Discussing these plans during the 2022 Autumn Budget announcement, Chancellor Jeremy Hunt said: "To make our motoring tax system fairer I've decided that electric vehicles will no longer be exempt from Vehicle Excise Duty .
"For almost all other vehicles – including hybrids which can generate their own electricity – you must pay vehicle tax every year."