Autumn Statement: EVs no longer exempt from VED from April 2025

The chancellor Jeremy Hunt has said in his Autumn Statement that to make the motoring tax system 'fairer', electric vehicles will no longer be exempt from Vehicle Excise Duty from April 2025.

The Autumn Statement document says that new zero emission cars registered on or after 1 April 2025 will be liable to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) currently £10 a year. From the second year of registration onwards, they will move to the standard rate, currently £165 a year.

Zero emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate.

The Expensive Car Supplement exemption for electric vehicles is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for 5 years.

Zero and low emission cars first registered between 1 March 2001 and 30 March 2017 currently in Band A will move to the Band B rate, currently £20 a year.

Zero emission vans will move to the rate for petrol and diesel light goods vehicles, currently £290 a year for most vans.

Zero emission motorcycles and tricycles will move to the rate for the smallest engine size, currently £22 a year.

Rates for Alternative Fuel Vehicles and hybrids will also be equalised.