Vehicle tax for electric and low emission vehicles

From 1 April 2025, registered keepers of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.

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

Electric, zero or low emission cars registered on or after 1 April 2025

You will need to pay the lowest first year rate of vehicle tax set at £10 from 1 April 2025. From the second tax payment onwards, you will pay the standard rate. This will be £195.

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

You will pay the standard rate. This will be £195.

Electric, zero or 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 will be £20.

Hybrid and alternatively fuelled vehicles (AFVs)

The £10 annual discount for hybrid and AFVs 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
• registered on or after 1 April 2017 - you will pay the standard rate (this will be £195)

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. 

Additional rate (expensive car supplement)

New electric and zero emission vehicles registered on or after 1 April 2025 with the list price exceeding £40,000 will attract the standard rate, plus the expensive car supplement for the first 5 years from the start of the second licence.