VEHICLES

It was announced in the 2022 Autumn Statement (17 November 2022), that HM Treasury planned to introduce vehicle excise duty (VED) for electric vehicles, including cars, vans and motorcycles, from April 2025.

On 14 August 2024, the government updated its guidance about changes to the VED rates, so that 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 petrol and diesel vehicles.

This change will apply to both new and existing vehicles.

Currently electric vehicles are exempt from VED if the electricity comes from:

• An external source, such as a private or public chargepoint
• An electric storage battery not connected to any source of power when the vehicle is moving
• Hydrogen fuel cells.

Most electric vans will move to the standard annual rate for light goods vehicles, which this year is set at £335 per annum (if paid in a single payment). More information about van VED rates is available here.

Information about the VED rates to be paid next year by electric and low emission cars, hybrid and alternatively fuelled vehicles (AFVs), expensive car supplements and electric motorcycles is available here.