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Plug-in: Electric vehicle owners to pay road tax from 2025


It has been announced owners of electric cars will have to start paying tax by 2025


The Chancellor, Jeremy Hunt, revealed his Autumn Statement that he read out at the House of Commons in Westminster, that electric cars, motorcycles and vans will have to start paying road tax from April 2025.


Currently, electric vehicles, be it cars, vans or motorcycles, are exempt from paying Vehicle Excise Tax (VED). VED is a tax that is levied on vehicles that are on the United Kingdom's road network.


Jeremy Hunt, who was educated at Oxford University and is a Conservative MP for South West Surrey, said in his announcement: "to make our motoring tax system fairer I've decided that from then, electric vehicles will no longer be exempt from vehicle excise duty."


Depending on the vehicle, different rates will apply. Electric cars registered from April 2025 will pay £10 in the first year and will pay the standard rate, (at the time of writing) £165, after that. The standard rate will apply to electric vehicles first registered after April 2017.


The Chancellor of the Exchequer said that tax rates for company car electric vehicles will remain lower than vehicles fulled in the traditional way (petrol or diesel).


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