In his autumn statement on 17th November 2022, Chancellor Jeremy Hunt announced that he was revising the road tax rules for electric vehicles to make things fairer for British motorists. (It needs to be borne in mind that, while ‘tailpipe emissions’ are lower than for internal combustion engine vehicles, electric vehicles still contribute to emissions overall, plus they take up space on the roads and are also responsible for wear and tear on road surfaces, in the same way as petrol and diesel powered vehicles).
Therefore, from April 2025:
Electric cars will be subject to a ‘first year’ road tax rate of £10, with an annual standard tax rate of £165 per annum, thereafter.
However, for cars costing in excess of £40,000, the road tax rate will be the standard rate of £165 PLUS an additional £355 per annum for five years in common with current petrol and diesel powered cars costing over £40k.
It should also be noted that the new ‘standard’ annual rate of £165 will also apply to ALL electric cars registered after April 2017.
In addition, and also from April 2025, the Benefit-in-Kind taxation rate for electric cars will increase by 1%, from the current 2% to 3% and increase by 1% each year onwards. by Kim Henson (Wheels-Alive)
