Electric vehicle (EVs) owners will be hit by a new tax from April 2025.
Chancellor Jeremy Hunt announced in his autumn statement that zero-emission vehicles will lose their vehicle excise duty (VED) exemption from that date. Owners of EVs who currently pay no VED will face an annual charge of up to £165 for cars and £290 for vans.
Mr Hunt said this will "make our motoring tax system fairer" as the Office for Budget Responsibility (OBR) has forecast that half of all new vehicles will be electric by 2025. VED is a tax levied on UK vehicles which depends on when they were first registered and their carbon emissions.
