Two months to go until major car tax changes
Two months to go until major car tax changes
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The DVLA has issued a reminder that taxes on certain types of cars are set to be hiked in two months’ time. On April 1, drivers of electric vehicles (EVs) will have to pay vehicle tax in the same way as those who own petrol and diesel vehicles. This means EVs will no longer be exempt from Vehicle Excise Duty (VED). The amount EV drivers pay will initially vary depending on when their car was purchased.
![[December 4, 2024, London, England, UK: Cars at an electric vehicle charging point in Central London as the government's luxury car tax is set to affect the majority of electric vehicles. (Credit Image: © Vuk Valcic/ZUMA Press Wire)]](https://metro.co.uk/wp-content/uploads/2025/01/SEI_238100850-2d06.jpg?quality=90&strip=all&w=646)
Owners will be taxed based on when their vehicle was registered. Those registered between April 1, 2017 and March 31, 2025 will immediately start paying the standard rate of £195. Drivers of new EVs registered after April 1, 2025 will pay £10 for their first year before moving to the standard rate. Any of those new EVs which were listed for £40,000 or more will also be subject to Expensive Car Supplement (ECS, also called the Luxury Car Tax) of £355 per year.
The Labour government has indicated that it will ‘consider raising the [ECS] threshold for zero emission cars’ in the future. Anyone thinking of buying an electric vehicle should remember they are still much cheaper on some fronts, the Electric Vehicle Association England (EVA England) has stressed. As well as ‘preferential’ first-year tax rates, EV running costs can be as low as 6p per mile, compared to 16-17p per mile for the average petrol or diesel car, the EVA said.
A number of other motoring law changes have been introduced in January, adding the following as offences under the Road Traffic Offender Act 1988:. Get in touch with our news team by emailing us at webnews@metro.co.uk. For more stories like this, check our news page. Arrow MORE: Thieves make off with ‘unstealable’ £183,000 Range Rover parked in owner’s drive. Arrow MORE: The little-known way you could lose your driving licence.
