New car tax changes will impact drivers across UKThey said: “Electric vehicles (EVs) currently enjoy free road tax (also called Vehicle Excise Duty). However, from 1 April 2025, drivers of electric cars in the UK will need to pay road tax for the first time. “The new 2025 VED rules will impact hundreds of thousands of EV owners and their electric vehicle running costs.” However, many EV owners may be liable for even higher fees due to a ‘luxury car tax’ charge which will also apply. The rule states vehicles valued over £40,000 must pay a £410 charge for five years after a model is first registered. It is believed EV owners could be more affected due to the heavy upfront costs of electric vehicles compared to combustion models. The RAC added: “As well as paying for road tax for the first time, there will also be an expensive car tax supplement for electric cars with a list price that exceeds £40,000. “Many of the road tax changes will be backdated, which means drivers who have never paid for VED before will be required to do so after 1 April 2025.” The policy was first outlined in November 2022 by former Chancellor Jeremy Hunt but the plan has yet to be axed by Labour. HM Revenue and Customs has previously claimed they will “continue to use the tax system to support the transition” to EVs. However, they stressed the new fee would ensure drivers “pay a fairer tax contribution” to use the roads. HMRC added: “This measure will impact on individuals who own an electric car, van or motorcycle. “These individuals will now need to pay VED on their vehicles. Changes will come into effect from 1 April 2025. For existing vehicles, changes to VED rates will apply from the vehicle’s annual renewal date for the 2025-26 financial year.” Source link Posted: 2024-08-12 04:24:43 |
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