These drivers to lose tax free perk after this date

The Impact of VED Price Increases

The UK government has announced that Vehicle Excise Duty (VED) charges will increase for almost all petrol and diesel car owners from April. This change will affect millions of motorists across the country, with prices rising by an average of 10% for most vehicles.

The End of Exemptions: A New Era for Electric Vehicles

The UK government has announced a significant change in the way electric vehicles (EVs) are taxed, effective from 1 April 2025. As of this date, newly registered EVs will no longer be exempt from Vehicle Excise Duty (VED), a tax levied on all vehicles in the UK.

This is a significant change for the UK’s electric vehicle market, which has been growing rapidly in recent years.

The Background

The UK government has been actively promoting the adoption of electric vehicles (EVs) as part of its efforts to reduce greenhouse gas emissions and meet its climate change targets. In 2022, the government announced plans to introduce Vehicle Excise Duty (VED) fees for electric vehicles. This move was seen as a way to encourage the growth of the EV market and make it more sustainable.

The New Rules

From 1 April 2025, registered keepers of electric cars will need to pay vehicle tax, just like traditional petrol or diesel cars. This means that electric vehicle owners will need to pay the same VED rates as those who own conventional vehicles. The new rules will apply to all electric vehicles, including those with a battery capacity of less than 50 kWh. Key points to note:

Electric vehicles will be subject to the same VED rates as traditional vehicles

The new rules will apply to all electric vehicles, regardless of battery capacity

The VED rates will be based on the vehicle’s CO2 emissions

The Impact on the Market

The introduction of VED fees for electric vehicles is likely to have a significant impact on the market.

Luxury EVs face tax uncertainty as UK government’s plan is questioned by industry experts.

The Concerns of Industry Experts

The UK government’s plan to tax electric vehicles (EVs) at £40,000 is being questioned by industry experts. They argue that this threshold does not accurately reflect the luxury nature of high-end electric models. In fact, some of the most expensive electric vehicles on the market, such as the Rolls-Royce Spectre and the Bentley Bentayga Hybrid, have prices above £150,000. Examples of high-end electric vehicles: + Rolls-Royce Spectre: £150,000 – £200,000 + Bentley Bentayga Hybrid: £150,000 – £200,000 + Tesla Model S: £100,000 – £150,000 These luxury vehicles are often equipped with advanced features, such as bespoke interiors, advanced infotainment systems, and high-performance capabilities.