In the UK, Vehicle Excise Duty (VED) is the main form of car tax. Many electric vehicles (EVs) used to avoid this tax. They paid no VED, no expensive-car supplement, and no fuel duty because they use no petrol or diesel.
That has now changed.
Since 1 April 2025, all EVs registered in the UK must pay the standard VED rate. Electric cars are no longer fully tax-free.
The expensive car supplement (ECS) also applies to many EVs with a list price above £40,000. This charge was previously waived for some zero-emission vehicles.
In short:
- EVs now pay a first-year fee and annual VED, just like petrol and diesel cars.
- High-value EVs may also pay the expensive car supplement.
- EVs still avoid fuel duty, but as this revenue falls, the Government is exploring new ways to tax road use.
How You Can Check Electric Car Tax For Your EV
Total Car Check makes it simple to see electric car tax costs. A quick reg lookup shows the exact amount due for any UK-registered EV. You’ll see the tax for both 6-month and 12-month periods, along with:
- real-world running costs
- EV-specific data insights
- estimated charging costs
Run a free check for free to see tax details instantly.
How the Rules Have Changed in Recent Years
Key milestones include:
- Up to 2024: Most EVs paid little or no VED.
- November 2022: The Government confirmed EVs would start paying VED from April 2025.
- April 2025: EVs began paying standard VED. The expensive car supplement also applied to EVs over the £40,000 threshold.
- Rising EV prices mean more cars now fall into the “luxury supplement” band.
These changes reflect the need to replace falling fuel duty revenue while still encouraging cleaner vehicles.
Rachel Reeves & Reported Plans to Tax Electric Cars
Chancellor Rachel Reeves has indicated that motoring taxes are under review as part of the Government’s fiscal plan. Several reports highlight potential new tax measures targeted at EVs:
- The so-called “expensive car supplement” is now applying to EVs above the £40,000 list price threshold. Some critics say this penalises EV buyers.
- Reports suggest Reeves may introduce a pay-per-mile tax for EVs from 2028, starting at maybe 3p per mile, to offset declining fuel duty.
- Industry voices warn that such measures could hinder EV uptake if introduced too aggressively.
What Could Electric Car Tax Look Like in the Future?
Looking ahead, several scenarios are plausible:
- Pay-per-mile / road-use pricing – As mentioned, EVs avoid fuel duty; a mileage tax may be introduced to maintain road-funding revenue.
- Weight-based tax or battery-related tax – Heavier EVs with large batteries could face higher VED or supplementary charges (some speculation suggests this).
- Incentives instead of penalties – To sustain EV uptake, the Government may simultaneously reduce or adjust other taxes (VAT on charging, grants) even while introducing new charges.
- Adjustments to thresholds – The £40,000 threshold for expensive car supplement may move or be revised so fewer EVs are unfairly penalised.
- Decoupling EV tax advantages – As EV adoption increases toward mainstream, tax advantages may diminish and tax parity with ICE vehicles may become the norm.
Why This Matters for EV Buyers
If you’re considering buying or already own an EV, you should:
- Check VED rates for the vehicle’s registration date and list price.
- Be aware that higher-priced EVs may have additional annual charges.
- Factor potential future tax reforms into running cost estimates (such as mileage charges).
- Monitor Government announcements around budgets and motoring tax.
- Consider that although EV running costs remain lower (no fuel duty, lower maintenance), tax changes could reduce this advantage.
Summary
Electric car tax in the UK is evolving. What was once a near-tax-free status for EVs has shifted. From April 2025, full VED applies and expensive EVs face the luxury car supplement. Chancellor Rachel Reeves is under pressure to reform the system further—with pay-per-mile and heavier taxation of higher-value EVs under discussion. As the motoring tax system adjusts to the rise of electric vehicles, staying informed is key for buyers and owners.
FAQ
Will electric car tax keep rising?
Possibly. As the Government replaces lost fuel duty revenue and ensures fairness across vehicles, additional charges (mileage-based or weight-based) may be introduced.
Are EVs still cheaper to run than petrol/diesel cars?
Yes — for now. Even with new tax measures, EVs typically cost less per mile due to lower running costs. But tax changes could narrow the gap.
When do the new tax rates for EVs apply?
From 1 April 2025, standard VED applied to EVs and the expensive car supplement can apply to EVs priced over the threshold. There could be further changes for EVs ahead.
Should I delay buying an EV until tax reforms stabilise?
It depends. If you’re buying a mainstream EV under the price threshold, tax risk is lower. For expensive EVs, factor in potential extra costs and watch Government announcements.
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