The New EV ‘Road Tax’ Implications Explained

Vehicle Excise Duty (more commonly known as road tax) is the hot topic in the EV world at the moment, so we're going to break it down here...

At present, in December 2022, zero-emission cars are exempt from paying road tax and the 'expensive car supplement'. Hybrid fuel types currently pay a discounted rate.

From 1st April 2025, low-emission and zero-emission cars will move to pay a full rate of road tax. This includes the ‘expensive car supplement’ which applies to cars bought for over £40,000.

“So How Much Is Road Tax Going to Cost for a Second-Hand Electric Car?”

PRE APRIL 2017 - Zero-emission cars that were registered between 1st April 2001 and 30th March 2017 will pay just £20 a year. By the time the changes take place, these cars will be at least eight years old.

POST APRIL 2017 - If you own a fully electric (zero emission) car that was registered on or after the 1st of April 2017, road tax will now cost you £165/year.

This can be paid in full or biannually.

“What About Second-Hand EV Vans?”

Zero emission vans will match the petrol and diesel light good vehicles rate, which at present is £290 per year.

“What About if I Bought a Brand New EV?”

After 1st April 2025, newly registered EVs will have to £10 - for the first year only.

Then, every time they renew their road tax (which can be done either annually or biannually), they will pay the new standard rate of £165, and the expensive car supplement if applicable.

At the moment, this is paid as a £310 extra tax paid along with the annual road tax rate, for the first five years of ownership.

At present, the charges for hybrids and alternative fuel-type cars have not been released but the government is due to do so very shortly.

Although it is easy to criticise the move made by the government, it's reminded that this is a required step if we are to continue investing in our infrastructure, allowing our country to turn towards a greener future.

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