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EV drivers to pay VED (road tax) from 2025

Jeremy Hunt has announced that Electric Vehicles will start to pay Vehicle Excise Duty (VED) , commonly known as ‘Road Tax’ from 2025.

The Chancellor of the Exchequer stated “To make our motoring tax system fairer I’ve decided that electric vehicles will no longer be exempt from Vehicle Excise Duty.”

He continued: “Company car tax rates will remain lower for electric vehicles and I’ve listened to industry bodies and we’ll limit rate increases to one percentage point a year for three years from 2025.”

The Treasury added: “The shift to Electric Vehicles is continuing at pace as the UK moves to net zero.  Therefore from 2025, road tax will be introduced for EVs so all motorists begin to pay a fair share.   Support for charging infrastructure is continuing.”

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