UK to impose vehicle excise duty on electric vehicles starting April 2025

express.co.uk — February 10, 2025 at 10:01 PM UTC

The UK government will introduce vehicle excise duty (VED) for electric vehicles (EVs) starting April 1, 2025. This new tax will increase ownership costs, potentially impacting the growing secondhand EV market, which saw a 57.4% rise in demand last year. Under the new rules, EV owners will pay £10 in the first year and £195 annually thereafter. Cars valued over £40,000 will incur an additional charge of up to £620 per year, affecting secondhand EV buyers if the vehicle is under seven years old. Experts warn that these changes could slow the booming secondhand EV market, which accounted for 2.5% of all UK car sales in 2024. The Society of Motor Manufacturers and Traders has called for a review of the new tax structure to support EV sales.

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