If you’re considering buying a brand-new car, particularly an electric vehicle (EV), it’s crucial to be aware of the upcoming changes to Vehicle Excise Duty (VED), commonly known as road tax. From 1st April 2025, the government is introducing significant changes that will impact all new car buyers, including those opting for EVs.
For years, electric vehicles have been exempt from paying
road tax, offering a financial incentive to switch to greener motoring.
However, from April 2025, this exemption will be scrapped. EV owners will now
be required to pay road tax in the same way as petrol and diesel car owners.
Additionally, the ‘expensive car supplement’ – an extra charge for vehicles
priced at £40,000 or more – will now apply to electric vehicles, something that
was previously avoided.
So, if you’re thinking of upgrading to an EV, now is the
time to act.
The first-year road tax, which is based on a car’s CO2
emissions, is increasing across the board. Here’s a quick breakdown of the
changes:
·
EVs, previously exempt, will now pay £10 in the
first year.
·
Cars with CO2 emissions between 1-50g/km will
see a rise from £10 to £110.
·
Cars emitting 51-75g/km will increase from £30
to £130.
·
Vehicles with emissions of 76g/km or more will
see their road tax double.
On top of this, the expensive car supplement is also
increasing. If you buy an EV priced over £40,000 before 1st April 2025, you’ll
remain exempt. But if you buy after this date, you’ll be paying an extra £425
per year for five years.
If you’re looking to purchase a new EV or a high-value car,
acting before 1st April 2025 could save you thousands of pounds over the
ownership of your vehicle. Buying before this deadline ensures you lock in the
existing benefits and avoid the new charges.
At Fish Brothers Nissan, we’re here to help you navigate these changes and find the best options for your needs. Whether you’re looking for a brand-new EV or a premium petrol or diesel model, our team is ready to assist you in making a smart, cost-effective decision.
With these changes coming soon, there’s never been a better time to explore your options. Contact us below to discuss your next car purchase and how you can avoid these rising costs. Our team is on hand to provide advice and help you make the best financial choice before the deadline arrives.
Find out more about existing VED rates Vehicle tax rates: Cars registered on or after 1 April 2017 - GOV.UK and planned changes on Vehicle Excise Duty rates for cars, vans and motorcycles — from 1 April 2025 - GOV.UK and Vehicle tax for electric, zero or low emission vehicles - GOV.UK
