Significant changes to rates of vehicle excise duty (VED) – often referred to as road tax – came into effect on 1 April 2025 with electric cars targeted, especially those costing over £40,000.
Previously, fully electric cars were exempt from VED, but from 1 April buyers of new electric cars will have to pay £10 – the lowest rate of first-year VED – for the first year before it steps up to the standard rate of £195 from the second year onwards.
