How Much Will Electric Car Tax Be in April 2025?

Date Posted: 20 March 2025

Share

How Much Will Electric Car Tax Be in April 2025

Electric vehicle (EV) owners in Northern Ireland and across the UK have enjoyed an exemption from Vehicle Excise Duty (VED), commonly known as road tax. However, from April 2025, this is set to change, as the UK government introduces new taxation rules for electric cars. If you're considering an EV or already own one, it's essential to understand how much tax you'll be paying and how it compares to traditional petrol and diesel vehicles.

VED Changes for Electric Cars in April 2025

From 1 April 2025, electric vehicles will no longer be exempt from VED. Instead, they will be subject to the same taxation system as petrol and diesel vehicles, though with some key differences. Here’s how the new tax structure will work:

All newly registered electric cars will be subject to the standard VED rate.
In the first year, EVs will be taxed at the lowest first-year rate, which is currently £10 for vehicles with CO2 emissions between 1-50g/km.
From the second year onwards, EVs will move to the standard annual rate, which is currently £195 per year (as of 2024 but subject to potential increases).

EVs registered between April 2017 and March 2025 will begin paying the standard annual VED rate of £195 from April 2025.
Previously, these vehicles were exempt from paying road tax.

The ‘Expensive Car Supplement,’ which applies to vehicles with a list price of over £40,000, will now include electric cars.
This means EVs over this threshold will pay an additional £410 per year for five years from the second year of registration.

How Does This Compare to Petrol & Diesel Cars?

Standard VED rates for petrol and diesel cars will increase also in April 2025, first-year rates for high-emission vehicles will be higher. The exact increase in road tax depends on your vehicle's emissions and registration date.
The Expensive Car Supplement also applies to petrol and diesel vehicles costing over £40,000.

What About Hybrid Vehicles?

Plug-in hybrid (PHEV) and mild hybrid (MHEV) vehicles will also see tax increases. They are already subject to road tax but currently pay lower first-year rates than conventional petrol and diesel cars. However, from April 2025, these rates will align more closely with standard combustion engine vehicles.

Why Is the Government Introducing EV Road Tax?

The exemption for EVs was originally introduced to encourage drivers to switch to electric. However, with more motorists making the transition, the government aims to balance road tax revenues while still promoting EV adoption through other incentives, such as grants and charging infrastructure investment.

What Does This Mean for Northern Ireland Drivers?

For EV owners in Northern Ireland, these changes mean that from April 2025, you’ll need to budget for annual road tax payments. However, running costs for EVs remain significantly lower than petrol and diesel vehicles, thanks to savings on fuel and maintenance. If you're considering an electric car, factoring in these new costs is essential when making your decision.

Conclusion

The upcoming VED changes mean that electric vehicles will no longer be tax-exempt from April 2025, with annual road tax fees starting at £195 for most models and up to £580 for high-value EVs. While this marks a shift in policy, EVs remain a cost-effective and environmentally friendly choice. If you're thinking about switching to an electric car, it's still worth considering the long-term savings and sustainability benefits they offer.

To view our range of electric vehicles, click here

How Much Will Electric Car Tax Be in April 2025?