The government has announced that electric cars, vans and motorcycles will start to pay VED from April 2025. The following is an extract from the HM Treasury document CP751, entitled Autumn Statement 2022 (para. 5.34), with some minor re-formatting:
“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.
- 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.”