A New Era for Electric Vehicle Road Tax
From April 2025, a significant shift in the UK's road tax system will impact electric vehicle owners. The government's decision to introduce VED (Vehicle Excise Duty) for EVs aims to create a fairer system for all motorists.
Key Changes for Electric Vehicles
New Zero-Emission Cars (Registered After April 2025):
First-year rate: £10
Subsequent years: Standard rate (£190) + Expensive Car Supplement (if applicable)
Zero-Emission Cars (Registered Between April 2017 and March 2025):
Standard rate: £190
Zero and Low-Emission Cars (Registered Between March 2001 and March 2017):
B rate: £20
Zero-Emission Vans:
Petrol/diesel light goods vehicle rate: £335
Zero-Emission Motorcycles and Tricycles:
Smallest engine size rate: £25
What is the Expensive Car Supplement?
The expensive car supplement is an additional rate payable on new electric vehicles with a list price exceeding £40,000. This is only charged from the second tax payment onwards, and only applies to vehicles registered on or after 1st April 2025.
Impact on Electric Vehicle Lease Customers
If you're leasing an electric vehicle, your monthly payments typically include VED. However, if the VED rate increases during your lease term, you may be responsible for paying the difference. Leasing companies will usually inform you of this if applicable.
While the government is introducing these changes, the practical implications for EV owners leasing are minimal. TCH Leasing will handle the registration and tax-related matters on your behalf.
Stay Informed and Adapt
As the automotive landscape continues to evolve, it's crucial to stay informed about the latest regulations and tax implications. By understanding these changes, you can make informed decisions about your electric vehicle ownership or leasing.
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