UK EV Car Tax from 2025

CloverRover

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If electric cars will have to pay what about all the cars that are also exempt? We dont pay anything on my wifes Audi A3 2.0Diesel
 

portlandg

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If electric cars will have to pay what about all the cars that are also exempt? We dont pay anything on my wifes Audi A3 2.0Diesel
Please correct me if I am wrong, but I imagine your wife's car was registered BEFORE April 2017. This is when the last VED rate update happened. If you read the small print, the ending of the exemption is for BEV's that were first registered after 2017. Those earlier will still be exempt
 

CloverRover

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Yes it was, i get easily confused about all this, they seem to change it all the time 😂
 

portlandg

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We had a good run, but another cost to consider in a few years (amongst the rising kWh costs):

https://www.bbc.com/news/business-63660321

I always thought this was coming, at least it's at the bottom end of the scale (£165 a year).
It is only the first year rate that changes depending on CO2 emissions. After the first year nearly all pay £165. There are some that pay £155, which I am disappointed that full BEV's aren't on. Then of course you have the additional £355 for those ( a lot) above £40,000
 
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Dunc999

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The £355 is the kick in the teeth I think, because the nature of the cars is that they are more expensive to make. No issue with the VED in principle. That said mine is (will be if I ever get it!) a company car anyway so it will be Lex Autoloease paying it.
 

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The £355 is the kick in the teeth I think, because the nature of the cars is that they are more expensive to make. No issue with the VED in principle. That said mine is (will be if I ever get it!) a company car anyway so it will be Lex Autoloease paying it.
This may be a challenge to the motor industry that they need to address the cost of the vehicles or face their sales hit.

However, ownership models are changing and a lot of EVs are bought as leases where the driver doesn’t see the cost of VED or ‘privilege tax’ so the end user impact will be amortised over a longer period.
 

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The £355 annual ‘Expensive Car Supplement’, which applies to cars that cost £40,000 or more from new, will also be applied to EVs from April 2025 – although this only applies to EVs sold from that date – it is not a retrospective charge like the standard VED fee.
 

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gov info at https://www.gov.uk/government/publi...ent-2022-documents/autumn-statement-2022-html
just search for 40,000 and you'll get to the VED section.


VED on Electric Vehicles (VED) - From April 2025, electric cars, vans and motorcycles will begin to pay VED in the same way as petrol and diesel vehicles. This will ensure that all road users begin to pay a fair tax contribution as the take up of electric vehicles continues to accelerate. The government will legislate for this measure in Autumn Finance Bill 2022. This means:

  • new zero emission cars registered on or after 1 April 2025 will be liable to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) currently £10 a year. From the second year of registration onwards, they will move to the standard rate, currently £165 a year
  • zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate
  • the Expensive Car Supplement exemption for electric vehicles is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for 5 years
  • zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year
  • zero emission vans will move to the rate for petrol and diesel light goods vehicles, currently £290 a year for most vans
  • zero emission motorcycles and tricycles will move to the rate for the smallest engine size, currently £22 a year
  • rates for Alternative Fuel Vehicles and hybrids will also be equalised
 

portlandg

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The £355 annual ‘Expensive Car Supplement’, which applies to cars that cost £40,000 or more from new, will also be applied to EVs from April 2025 – although this only applies to EVs sold from that date – it is not a retrospective charge like the standard VED fee.
At the moment.
When VED rates have changed in the past it has always been for new cars registered after the revision date. This is the first time, as far as I can remember, that a new rate has been retrospectively applied. Who knows what will be dreamt up in the next 3 years.
 

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At the moment.
When VED rates have changed in the past it has always been for new cars registered after the revision date. This is the first time, as far as I can remember, that a new rate has been retrospectively applied. Who knows what will be dreamt up in the next 3 years.
Let's face it, a general election is due before these new rules come into force and based on the current situation it looks like either a different party will be in charge or a hung parliament, so who knows what changes there may be nearer the time.
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