Starting April 2025, the UK government will implement changes to Vehicle Excise Duty. This effects Electric, zero and low-emission vehicles.
The aim is to align their tax rates with those of petrol and diesel vehicles.
Full details can be found at the Government guidance but we have provided a simplified overview of the upcoming changes below:
Vehicle Type | Registration Date | Tax details |
| Electric cars | On or after 1 April 2025 | £10 (first year rate) £195 annually thereafter |
Between 1 April 2017 and 31 March 2025 | £195 annually | |
| Between 1 March 2001 and 31 March 2017 | £20 annually | |
Hybrid and Alternatively fueled cars | On or after 1 April 2017 | £195 annually |
Before 1 April 2017 | Tax based on Co2 emissions Vehicle tax rates: Cars registered between 1 March 2001 and 31 March 2017 – GOV.UK | |
Electric vans | Any | Standard annual rate for light goods vehicles applies Vehicle tax rates: Other vehicle tax rates – GOV.UK |
Expensive car supplement | Electric cars with a list price >£40,000 | Additional rate applies (£425) from the second time the vehicle is taxed and applies for 5 years |
Let’s demonstrate the changes with some practical examples to make things clearer:
New Electric Car
Car: Tesla (Electric)
List price: £35,000
Registration Date: May 2025
Tax Details:
First year: £10
Subsequent years: £195 annually
Expensive Electric Car
Car: BMW iX (Electric)
List price: £75,000
Registration Date: August 2025
Tax Details:
First year: £10
Second year onwards: £195 plus Expensive car supplement (around £425 annually). Total for second year onwards = £620
Electric van
Vehicle: Mercedes eSprinter
Registration Date: Feb 2026
Tax Details:
Annual rate: Standard rate for light goods vehicles = £345 for most vans
We are here to discuss any of the upcoming changes and how they might affect you so please contact us.
