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March 7, 2025Changes to Vehicle Tax for Electric, Zero, and Low Emission Vehicles from April 2025
From 1 April 2025, the UK government will introduce changes to the Vehicle Excise Duty (VED) system, requiring registered keepers of electric, zero, or low emission vehicles to pay vehicle tax similarly to petrol and diesel vehicles. This policy will apply to both new and existing vehicles, ending the current exemption for electric vehicles.
Key Changes
Removal of Band A Exemption
Currently, vehicles in Band A (with CO₂ emissions of 0-100g/km) are exempt from vehicle tax. However, this band will be removed, and affected vehicles will be taxed according to the first payable band in the VED system.
How the Changes Will Affect Different Vehicles
| Vehicle Type | Registration Period | New Tax Rates (from April 2025) |
|---|---|---|
| Electric, Zero, or Low Emission Cars | On or after 1 April 2025 | £10 (first year), £195 (standard rate from second year) |
| Electric, Zero, or Low Emission Cars | 1 April 2017 – 31 March 2025 | £195 (standard rate) |
| Electric, Zero, or Low Emission Cars | 1 March 2001 – 31 March 2017 | £20 |
| Hybrid and Alternatively Fuelled Vehicles (AFVs) | Before 1 April 2017 | Based on CO₂ emissions |
| Hybrid and AFVs | On or after 1 April 2017 | £195 (standard rate, discount removed) |
What This Means for Drivers
If you own an electric, hybrid, or alternatively fuelled vehicle, you will now need to budget for annual vehicle tax payments. This change is part of the government’s strategy to ensure fair taxation across all vehicle types as the adoption of electric vehicles increases.
How to Check Your Tax Rate
Visit the GOV.UK vehicle tax rates page to check how much you will need to pay based on your vehicle’s registration date and emissions.
