ELECTRIC VEHICLE owners will soon bid farewell to their tax-exempt status as the UK government introduces new road tax regulations from April 2025. The change will affect approximately 1.3 million EV drivers across the country, according to reports.
Under the new rules, electric car owners will be required to pay the standard £190 annual rate currently applied to petrol and diesel vehicles. The government's decision aims to create what it calls "a fairer tax contribution" system across all vehicle types.
The changes will affect popular electric models including the Volkswagen ID.3, Tesla Model 3, BMW i4, and Polestar 2. For new zero-emission vehicles registered after 1 April 2025, owners will initially pay £10 in the first year, rising to the standard rate of £190 in subsequent years.
Luxury electric vehicle owners face steeper charges. Those with cars priced above £40,000 will need to pay an additional Expensive Car Supplement of £410 annually for five years, potentially pushing their yearly tax bill to £600.
Reports said that the reform extends to older vehicles as well. Zero and low-emission cars registered between March 2001 and March 2017 currently in Band A will move to Band B, carrying a £20 annual charge.
"From April 1, 2025, drivers of electric and low-emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of internal combustion engine vehicles do," the government announced, adding that the changes apply to both new and existing vehicles.
The decision comes as the government seeks to address the potential loss of tax revenue from the growing electric vehicle market. With EV adoption rising steadily, ministers argue that maintaining tax exemptions would become unsustainable for public finances.
The government maintains these changes will ensure all road users contribute their fair share to maintaining the country's infrastructure.
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