EV Road Tax is Coming – Even for Older Models

It was inevitable—electric vehicles (EVs) are losing their road tax exemption. From 1 April 2025, any newly registered EV will be subject to a £10 first-year Vehicle Excise Duty (VED) charge, followed by an annual fee of £195 from the second year onwards. Existing EV owners aren’t off the hook either—cars registered between 2017 and 2024 will also start paying £195 per year, while older models (registered before 2017) will be charged £20 annually.

EVs Now Subject to ‘Luxury Car Tax’

The government defines any car with a retail price over £40,000 as “expensive,” making it liable for the Expensive Car Supplement (ECS). This adds an extra £410 per year on top of standard VED for the first five years after registration. Previously, EVs were exempt from this charge, but that changes from April 2025. With Auto Trader reporting that the median price of a new car in April 2024 was just under £42,000, this means that for many buyers, what’s considered an “average” car is now classed as “luxury” in tax terms.