Upcoming Changes to EV Tax
Discussion
Did anyone else just get a letter from the DVLA starting that they will need to pay vehicle tax on their vehicle from 1 April 2025?
More info here: https://www.gov.uk/guidance/vehicle-tax-for-electr...
More info here: https://www.gov.uk/guidance/vehicle-tax-for-electr...
SteBrown91 said:
Been known for a while. If you taxed after April 24 you get a full 12 months at £0 but next renewal will be at the standard rate plus luxury car tax (which most EVs get caught up in too).
As far as I am aware, the luxury tax part only applies to new cars sold from next April onwards,so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
PBCD said:
As far as I am aware, the luxury tax part only applies to new cars sold from next April onwards,
so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
I had read otherwise- however I am more than happy to be wrong as I am possibly going to be stung by it next year!so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
SteBrown91 said:
PBCD said:
As far as I am aware, the luxury tax part only applies to new cars sold from next April onwards,
so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
I had read otherwise- however I am more than happy to be wrong as I am possibly going to be stung by it next year!so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
Additional rate (expensive car supplement)
"For new electric vehicles with a list price exceeding £40,000, you will now need to pay the expensive car supplement from the second tax payment onwards. This applies to vehicles registered on or after 1 April 2025."
Ste-EVo said:
SteBrown91 said:
PBCD said:
As far as I am aware, the luxury tax part only applies to new cars sold from next April onwards,
so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
I had read otherwise- however I am more than happy to be wrong as I am possibly going to be stung by it next year!so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
Additional rate (expensive car supplement)
"For new electric vehicles with a list price exceeding £40,000, you will now need to pay the expensive car supplement from the second tax payment onwards. This applies to vehicles registered on or after 1 April 2025."
SteBrown91 said:
Ste-EVo said:
SteBrown91 said:
PBCD said:
As far as I am aware, the luxury tax part only applies to new cars sold from next April onwards,
so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
I had read otherwise- however I am more than happy to be wrong as I am possibly going to be stung by it next year!so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
Additional rate (expensive car supplement)
"For new electric vehicles with a list price exceeding £40,000, you will now need to pay the expensive car supplement from the second tax payment onwards. This applies to vehicles registered on or after 1 April 2025."
Just been looking t the Budget publication and it includes the following on EV VED:
5.86 VED First Year Rates – The government will change the VED First Year Rates for new cars registered on or after 1 April 2025 to strengthen incentives to purchase zero emission and electric cars, by widening the differentials between zero emission, hybrid and internal combustion engine (ICE) cars.
• Zero emission cars will pay the lowest first year rate at £10 until 2029-30.
• Rates for cars emitting 1-50 g/km of CO2, including hybrid vehicles, will increase to £110 for 2025-26.
• Rates for cars emitting 51-75 g/km of CO2, including hybrid vehicles, will increase to £130 for 2025-26.
• All other rates for cars emitting 76 g/km of CO2 and above will double from their current level for 2025-26.
5.87 VED Expensive Car Supplement – The government recognises the disproportionate impact of the current VED Expensive Car Supplement threshold
for those purchasing zero emission cars and will consider raising the threshold for zero emission cars only at a future fiscal event, to make it easier to buy electric cars
So for now EVs costing over £40k are stuffed after year 1 but that might change
5.86 VED First Year Rates – The government will change the VED First Year Rates for new cars registered on or after 1 April 2025 to strengthen incentives to purchase zero emission and electric cars, by widening the differentials between zero emission, hybrid and internal combustion engine (ICE) cars.
• Zero emission cars will pay the lowest first year rate at £10 until 2029-30.
• Rates for cars emitting 1-50 g/km of CO2, including hybrid vehicles, will increase to £110 for 2025-26.
• Rates for cars emitting 51-75 g/km of CO2, including hybrid vehicles, will increase to £130 for 2025-26.
• All other rates for cars emitting 76 g/km of CO2 and above will double from their current level for 2025-26.
5.87 VED Expensive Car Supplement – The government recognises the disproportionate impact of the current VED Expensive Car Supplement threshold
for those purchasing zero emission cars and will consider raising the threshold for zero emission cars only at a future fiscal event, to make it easier to buy electric cars
So for now EVs costing over £40k are stuffed after year 1 but that might change
oop north said:
5.86 VED First Year Rates – The government will change the VED First Year Rates for new cars registered on or after 1 April 2025 to strengthen incentives to purchase zero emission and electric cars, by widening the differentials between zero emission, hybrid and internal combustion engine (ICE) cars.
• Zero emission cars will pay the lowest first year rate at £10 until 2029-30.
So an EV will now be £10 not £190? Am I reading this right? Or only EVs after 1st April 2025 will be £10, everything else will be £190?• Zero emission cars will pay the lowest first year rate at £10 until 2029-30.
P675 said:
So an EV will now be £10 not £190? Am I reading this right? Or only EVs after 1st April 2025 will be £10, everything else will be £190?
No - it's confusing.That is only talking about 'first year VED', a tax which is anyway included in the 'on the road' price of a new car.
That doesn't affect the annual tax thereafter for EVs, which will be £190 pa as previously announced - unfortunately there doesn't appear to be any relief from that in the budget.
samoht said:
No - it's confusing.
That is only talking about 'first year VED', a tax which is anyway included in the 'on the road' price of a new car.
That doesn't affect the annual tax thereafter for EVs, which will be £190 pa as previously announced - unfortunately there doesn't appear to be any relief from that in the budget.
Oh ok, nothing to get excited about then.That is only talking about 'first year VED', a tax which is anyway included in the 'on the road' price of a new car.
That doesn't affect the annual tax thereafter for EVs, which will be £190 pa as previously announced - unfortunately there doesn't appear to be any relief from that in the budget.
James6112 said:
PBCD said:
SteBrown91 said:
Been known for a while. If you taxed after April 24 you get a full 12 months at £0 but next renewal will be at the standard rate plus luxury car tax (which most EVs get caught up in too).
As far as I am aware, the luxury tax part only applies to new cars sold from next April onwards,so you could go out and buy a £100,000 EV tomorrow and all you would pay is the new £190 RFL
a year from now.
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