EV road tax (VED) in the UK: what changes from April 2025

Until April 2025, fully electric cars paid no Vehicle Excise Duty. From April 2025, zero-emission cars registered on or after 1 April 2017 pay road tax, though at the lowest rates available.

First-year rate

For new EVs registered from April 2025, the first-year VED rate is £10. This applies only in the year of registration — it is set at the lowest band for zero-emission vehicles and is deliberately low to maintain the relative advantage over petrol and diesel.

Standard annual rate

From year two onwards, zero-emission cars pay the standard rate applicable to all cars. For 2025–26 that is £195 per year. This applies regardless of price or battery size.

The Expensive Car Supplement

Cars with a list price above £40,000 pay an additional Expensive Car Supplement for years two to six. The supplement is currently £425/year on top of the standard rate. This applies to all fuel types, including electric. Given that many popular EVs (Tesla Model 3, BMW i4, Polestar 2 and others) list above £40,000, this affects a significant proportion of the UK EV market.

Leased versus purchased vehicles

On a lease, VED is typically included in the monthly payment — it is the leasing company's responsibility. On a personal purchase, VED is your responsibility. Check whether your lease quote includes VED before comparing costs.

Overall picture

Even with VED now payable, the combined running costs of an EV (fuel, tax, servicing) remain lower than for equivalent petrol vehicles for most usage profiles. The Expensive Car Supplement is the main gotcha for buyers of higher-specification EVs.

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