Car tax is changing from today – what it means for you
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The drivers facing new car tax under April 1 changes
- From Tuesday, electric vehicles (EVs) in the UK will no longer be exempt from Vehicle Excise Duty (VED), also known as car tax.
- New EVs will be charged £10 in the first year, then at least £195 annually thereafter.
- EVs worth more than £40,000 will also face an additional "expensive car supplement" of £425 per year for years two through six.
- This change, announced in 2022, aims to create a "fairer" motoring tax system.
- While EVs will still offer overall cost savings compared to petrol vehicles due to lower running costs, the new VED charges may impact consumer adoption of electric cars.