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In the 2022 Autum Budget it was announced that Vehicles Excise Duty (VED / Road Tax) would come into effect for Electric Cars. These changes come into effect from April 1st 2025.
These changes are on two levels.
Electric Cars will commence to be eligible for VED / Road Tax.
From April 1st 2025, the first years VED / Road cost will be £10.00.
The following years the cost will be at the lowest rate – currently £195.00.
These changes are also retrospective for those who already have an Electric Car
From April 1st 2025 Electric Cars will also be eligible for the “Expensive Car Supplement” (ECS).
What is the Expensive Car Supplement” (ECS)?
Vehicles costing over £40,000 attract an additional payment / Tax of £410.00 PA.
This charge comes into effect from the second year and remains for 5 years.
These changes are not retrospective so will not affect vehicles registered before April 1st 2025.
How Does This Effect Electric Vehicles Financially Over The Course Of Ownership?
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |
VED | £10.00 | £195.00 | £195.00 | £195.00 | £195.00 | £195.00 | £195.00 |
ECS | £0.00 | £410.00 | £410.00 | £410.00 | £410.00 | £410.00 | £0.00 |
Total PA | £10.00 | £605.00 | £605.00 | £605.00 | £605.00 | £605.00 | £195.00 |
Accumulative Total | £10.00 | £ 615.00 | £1,220.00 | £1,825.00 | £2,430.00 | £3,035.00 | £3,230.00 |
Costs For Vehicles over £40K After 01/04/2025. Based upon current VED & ECS Rates 03/01/2024. | |||||||
