Electric Car VED Changes 2025

(Posted on 10/02/25)

Starting from April 1st, 2025, individuals with electric vehicles (EVs) will no longer be exempt from road tax, also known as Vehicle Excise Duty (VED). This change will apply to both current EV owners and future electric vehicles.

Until April 2025, electric vehicles were exempt from paying Vehicle Excise Duty (VED) as part of a government incentive to encourage their adoption. However, it has now been announced that this exemption will end on April 1st, 2025, removing one of the key financial benefits of owning an electric vehicle.

This new rule will have a significant impact, imposing additional costs of hundreds on some drivers. Not only will electric vehicle owners now have to pay VED, but electric cars with a list price exceeding £40,000 will also be subject to expensive car supplement.

These changes can be confusing, especially with costs varying based on several factors. To help clarify, here’s a breakdown so you know exactly what you could be paying. This guide will outline the charges that apply starting from April 1st, 2025.

How Much Is VED for Electric Car Road Tax?

Currently, electric vehicle drivers pay no road tax, as this was deliberately introduced as an incentive to encourage people to adopt electric vehicles. 

From April 1st, 2025, for the first time, all fully electric vehicles will be subject to road tax, which will be £195 per year. New zero-emission cars registered on or after April 1st, 2024, will qualify for the first-year VED rate, which will be just £10.

From the second year after a car is registered, it will be subject to the standard road tax rate of £195 per year. This also applies to zero-emission cars registered between April 1st, 2017, and March 31, 2025, which will also pay the £195 VED rate annually.

Expensive Car Supplement

From April 1st, 2025, electric vehicles will no longer be exempt from the expensive car supplement. This means that all new electric cars registered on or after this date with a list price exceeding £40,000 will be liable for the supplement.

Starting April 1st, 2025, owners of electric vehicles with a list price exceeding £40,00 will need to pay the expensive car supplement of £425 per year for five years, beginning in the second year of the car’s registration.

This will not be applied to zero-emission cars registered before 1st April 2025.

As a result, EV drivers with a higher-priced vehicle could face a total bill of £620 per year.

Here's a simplified breakdown of the new electric cars' road tax:

• For the first year, the road tax will be £10 (New electric cars registered on or after April 1st, 2024)
• After the first year,  the road tax will rise to £195 per year.
• For the first five years, owners of vehicles of a list price over £40,000 will pay a standard rate, of £425 annually.
• These changes start from 1st April 2025.