The Chancellor will launch a massive car tax sting on Britain's drivers this year - but for those who own electric vehicles there is a way to defer costs for another 12 months.
The UK government is introducing new Vehicle Excise Duty (VED) rules from 1 April 2025, ending the exemption for electric vehicles (EVs). EV owners can avoid the £195 annual tax increase by re-taxing their vehicles before 1 April, deferring the new charges for a year. New EVs costing over £40,000 will also face an additional £425 "expensive car supplement" annually for five years, impacting most popular EVs. The changes, announced by Chancellor Rachel Reeves, aim to raise £400 million annually but have faced criticism for being unfair to EV adopters.
