New EVs will no longer be road tax free for buyers from April 2025, the chancellor Jeremy Hunt has announced, in a move toward a “fairer” car tax system.
Electric car road tax won’t be free from 2025
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The new plans will mean that electric cars registered from April 2025 will pay the lowest possible rate of £10 for the first year, before going to the standard rate for subsequent years. That rate is currently £165. That standard rate will also apply to EVs registered after April 2017.
The reaction from the motor industry has been predictable, with marques and industry bodies alike generally claiming the move could harm EV uptake.
“Unfortunately, today’s announcement by the government to impose VED for electric vehicles from 2025 is a short-sighted move,” said Ford UK chairman Tim Slatter.
“We are still many years from the ‘tipping point’ when electric vehicles will reach cost parity with petrol and diesel vehicles. Until then, we should be incentivising customers to make the greener choice.”
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On the contrary, Hunt references the Office for Budgetary Responsibility’s forecasts, that half of all cars sold in the UK will be electric by the end of 2025.
Will the future taxation of electric cars put you off switching to one, or delay your switch? Was it simply an inevitability, or should the road tax system undergo a total shake-up beyond just folding EVs into the present setup? Let us know your thoughts.
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