Drivers of used electric vehicles face a “tax penalty” that could keep older, polluting cars on the road for longer, according to new analysis. Green consultancy New AutoMotive says that vehicle excise duty reforms will see motorists charged up to £145 more per year for choosing a cleaner vehicle.
Pure electric cars are currently exempt from VED. But Chancellor Jeremy Hunt announced last month that from April 2025 new zero-emission cars will be liable for a first-year rate of £10, and an annual rate of £165 in subsequent years.
Zero-emission cars registered from April 1 2017 – which is the vast majority of all electric cars on the road – will also be liable for the £165 rate. VED for cars registered before that date will continue to be based on their fuel efficiency.
