Guidance

Vehicle tax for electric and low emissions vehicles

How the Vehicle Excise Duty (VED) changes from 1 April 2025 will affect your vehicle.

From 1 April 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 (ICE) vehicles do. This change will apply to both new and existing vehicles and will ensure all drivers begin to pay a fairer tax contribution.

This new measure effectively removes band A under the graduated VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.

How the changes will affect your vehicle

Electric and low emission cars registered on or after 1 April 2025

You will need to pay the lowest first year rate of vehicle tax (which applies to vehicles with CO2 emissions 1 to 50g/km). From the second tax payment onwards, these vehicles will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.

Electric and low emission cars registered between 1 April 2017 and 31 March 2025

You will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.

Electric and low emission cars registered between 1 March 2001 and 31 March 2017

These vehicles will move to the first band that has a VED value. This is £20 for 2024 but is subject to change for 2025.

Alternatively fuelled vehicles (AFVs)

The £10 annual discount for AFVs and hybrids will be removed, and the rate you will pay will depend on when the vehicle was first registered. If the vehicle was:

  • registered before 1 April 2017 - this rate will depend on the vehicle’s CO2 emissions (check the current rates for this vehicle)

  • registered on or after 1 April 2017 - you will pay the standard rate (this is £190 for 2024 but is subject to change for 2025)

Electric vans

Most electric vans will move to the standard annual rate for light goods vehicles.

Electric motorcycles

Electric motorcycles and tricycles will move to the annual rate for the smallest engine size.

View the vehicle tax rates page for details on current tax rates for all vehicles.

Additional rate (expensive car supplement)

For new electric vehicles with a list price exceeding £40,000, you will now need to pay the expensive car supplement from the second tax payment onwards. This applies to vehicles registered on or after 1 April 2025.

Published 9 April 2024